The Impact of Bitcoin Demand in the United States

The demand for bitcoin (BTC) in the United States has experienced a significant increase following Federal Reserve chair Jerome Powell’s recent comments at the Jackson Hole symposium. This surge in interest has led to a rise in Bitcoin’s value, as evidenced by the spike in the Coinbase Premium, which reached its highest level since July at 0.11%.

One key metric to monitor the movement of BTC is the Inter-exchange Flow Pulse (IFP), which measures the one-year cumulative sum of BTC net flows between Coinbase and other exchanges. The recent rally in the IFP suggests that bitcoin is flowing into U.S.-based trading platforms like Coinbase due to the increased demand and price premium in the country.

Increase in Open Interest

The perpetual futures market has also seen a rise in bitcoin demand, with Open Interest (OI) spiking by approximately 10,000 BTC to 276,000 BTC. This surge indicates that traders are opening new long positions, with buy orders outweighing sell orders.

In response to the increased demand in the U.S., the price of bitcoin experienced a 6% uptick, reaching $65,000, its highest level since August. Despite this rally, investors have not engaged in significant profit-taking, as evidenced by the low realized profits of $536 million.

However, it is important to note that the Apparent bitcoin Demand 30-day growth has declined from 496,000 BTC in early April to a negative state of 36,000 BTC. This metric, which reflects the daily total bitcoin block subsidy and the change in the number of BTC not moved in a year or more, indicates a need for increased apparent bitcoin demand in the market for prices to fully recover and rally to new highs.

While the United States has seen a surge in bitcoin demand following Jerome Powell’s remarks, the overall growth in demand for bitcoin remains low and even negative in recent weeks. Despite the positive signs of increased interest from U.S. investors, there is still a need for sustained growth in apparent demand for bitcoin in the broader crypto market for prices to reach new highs.