The Crypto Market: Analyzing Bitcoin Demand in the United States

The recent comments made by Federal Reserve chair Jerome Powell at the Jackson Hole symposium have sparked an increase in demand for Bitcoin (BTC) in the United States. This surge in interest has been reflected in the rise of the Coinbase Premium, reaching its highest level since July at 0.11%. This increase indicates that U.S. investors are showing higher demand for BTC compared to investors from other countries. The movement of BTC from non-U.S. exchanges to Coinbase, traditionally observed during bull markets, suggests a positive trend in bitcoin’s price.

The Inter-exchange Flow Pulse (IFP) metric has also seen a significant uptick, measuring the one-year cumulative sum of BTC flows between Coinbase and other exchanges. This increase further supports the notion that bitcoin is flowing into the U.S.-based platform due to the price premium and heightened demand in the country. As a result, the perpetual futures market has experienced an increase in Open Interest, signaling a rise in new long positions being opened by traders.

In response to the growing demand for Bitcoin in the U.S., the price of BTC has seen a 6% increase, moving from $60,000 to $65,000, the highest level since August 2. Despite this rally, investors have not engaged in substantial profit-taking, with realized profits totaling $536 million, significantly lower than previous market tops this year. Apparent Bitcoin Demand 30-day growth has also declined from 496,000 BTC to a negative 36,000 BTC, highlighting the need for increased apparent bitcoin demand for prices to fully recover and reach new highs.

While the demand for Bitcoin in the United States has surged following recent events, the overall Bitcoin demand growth remains low and has even entered a negative state in recent weeks. The increase in U.S. investor interest has fueled the rise in the Coinbase Premium and IFP metric, indicating a positive trend in bitcoin’s price. However, in order for prices to fully recover and reach new highs, the crypto market needs a boost in apparent bitcoin demand.