Bitcoin Demand Cools Off as US Investors Hit the Brakes – What’s Next for BTC?
Bitcoin’s bull run hits a snag as US buyers retreat—signaling a potential shift in market dynamics.
Is this a temporary dip or the start of a longer cooldown? Here’s the breakdown.
US demand slump: The latest on-chain data shows weakening appetite from American investors, historically the crypto market’s biggest spenders. Are rising yields and regulatory fatigue to blame?
Global resilience: While US flows stutter, Asia and institutional OTC desks keep accumulation steady—proving Bitcoin’s appeal isn’t dead, just rotating.
Market makers yawn: Liquidity remains deep despite retail hesitation, with bid-ask spreads tighter than a Wall Street banker’s grip on their bonus. Typical.
The bottom line: Bitcoin’s survived worse. This isn’t capitulation—it’s consolidation. But watch those Fed whispers; nothing moves markets like cheap money drying up.
BTC Price Pauses Rally as US Investors Step Back
On-chain data shows a marked dip in trading activity among US participants over the past week. This increases the risk of an extended consolidation phase, or even a short-term correction.
According to data from CryptoQuant, BTC’s Coinbase Premium Index (CPI) has fallen steadily over the past week, signaling a decline in buying interest from US-based investors.
Per the data provider, this closed at a seven-day low of -0.017 yesterday.
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This metric measures the difference between BTC prices on Coinbase and Binance, serving as a reliable gauge of US investor sentiment.
When CPI rises, BTC trades at a premium on Coinbase compared to international exchanges, signaling stronger buying pressure from US-based investors.
Conversely, when it falls or turns negative, it indicates that demand on Coinbase is trailing behind global markets, due to profit-taking or fading interest among US buyers. This is currently in play, as reduced demand from US investors may be a contributory factor to the coin’s sideways movement after it reached its record high two days ago.
Further, this cooling sentiment has also been reflected in the decline in spot inflows into BTC-backed exchange-traded funds (ETFs) since the start of the week.
Per SosoValue data, while BTC-backed funds have maintained positive net inflows since Monday, the volume of these inflows has been steadily dropping.
This points to a modest, yet noticeable pullback in institutional participation.
$118,000 Floor or $122,000 Ceiling?
These trends suggest that the wave of aggressive buying seen during BTC’s recent rally may be losing momentum. If this continues, BTC could extend its decline and fall to $118,851.
However, if sentiment improves among US-based investors and they increase coin accumulation, BTC’s price could resume its uptrend and revisit its all-time high.
