The post Bitcoin Demand in the US is Increasing, But There’s a Catch appeared on BitcoinEthereumNews.com.

The demand for bitcoin (BTC) in the United States has been increasing following Federal Reserve chair Jerome Powell’s comments at last week’s Jackson Hole symposium. However, this increase has not extended to the rest of the crypto market. According to a CryptoQuant report, BTC rallied on the back of rising investor interest in the U.S., but the overall Bitcoin demand growth is at low levels and has remained negative over the last few weeks. Bitcoin Rallies Amid Increased Demand The increase in Bitcoin demand from U.S. investors was evident in the spike in the Coinbase Premium, which surged to 0.11%, its highest level since July. The rise of this metric indicates that the local trading platform is seeing higher demand from U.S. investors than exchanges outside the country. CryptoQuant said it was a sign that BTC had begun to flow from non-U.S. trading platforms to Coinbase, a movement usually seen during bull markets and an indication of an upward trend in bitcoin’s price. The Inter-exchange Flow Pulse (IFP) metric, which measures the one-year cumulative sum of BTC net flows between Coinbase and other exchanges, also rallied as an indication that the asset was flowing into the U.S.-based crypto platform in response to the price premium and higher demand in the U.S. In addition, bitcoin demand in the perpetual futures market increased alongside Open Interest. OI spiked by roughly 10,000 BTC to 276,000 BTC, signaling that traders were opening new long positions and buy orders dominated sell orders. Apparent Demand Still Negative Amid the increased demand for Bitcoin in the U.S., the price of the underlying recorded a 6% uptick, moving from $60,000 to $65,000, its highest level since August 2. Despite this rally, investors did not engage in significant profit-taking. This was seen in realized profits amounting to $536 million,…

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Filed under: News - @ August 31, 2024 11:17 am