Bitcoin Demand Spikes in the United States Following Powell’s Comments
Recently, the demand for bitcoin (BTC) in the United States has seen a significant uptick due to remarks made by Federal Reserve chair Jerome Powell at the Jackson Hole symposium. However, this surge in demand has not translated to the entire cryptocurrency market, with overall growth still remaining low.
As per a report from CryptoQuant, BTC has experienced a rally attributed to the growing interest of investors in the U.S. However, the general growth in Bitcoin demand has been stagnant and even negative in recent weeks.
Bitcoin Sees a Boost in Response to Increased U.S. Demand
The rise in Bitcoin demand from U.S. investors was evident in the surge of the Coinbase Premium, reaching 0.11%, the highest level since July. This surge indicates a higher demand from U.S. investors compared to those outside the country at local trading platforms.
- The increase in the Coinbase Premium signifies growth in U.S. investor interest in Bitcoin.
- Movement of BTC from non-U.S. exchanges to Coinbase is a bullish market indicator.
Additionally, the Inter-exchange Flow Pulse (IFP) metric, reflecting the one-year cumulative flow of BTC between Coinbase and other exchanges, witnessed a boost. This movement of assets into the U.S.-based platform was driven by the increased demand and price premium in the U.S.
Despite Increases, Bitcoin Demand Growth Remains Subdued
While the surge in U.S. Bitcoin demand led to a 6% price increase, pushing it from $60,000 to $65,000, profit-taking activities among investors remained minimal. Realized profits stood at $536 million, significantly lower than the figures seen at previous market peaks earlier this year.
- Bitcoin price surged by 6% in response to the increased U.S. demand.
- Investors refrained from major profit-taking despite the price uptick.
Furthermore, the Apparent bitcoin Demand 30-day growth plummeted from 496,000 BTC in April to a negative state of 36,000 BTC. This metric compares the daily total bitcoin block subsidy with the daily change in the amount of BTC that has not been transacted in over a year, indicating a decline in overall demand.
Crypto Market Requires Increased Apparent Bitcoin Demand for Full Recovery
CryptoQuant emphasizes the necessity of a surge in apparent bitcoin demand for the market to witness a complete recovery and push prices to new heights. A negative growth in demand could hinder the market’s ability to regain full strength and pave the way for further price rallies.
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