US Investors Flee Bitcoin—Is the Bull Run Over?

Bitcoin’s hype train might be hitting the brakes stateside. Demand from US investors is cooling off—fast. Could this spell trouble for BTC’s price trajectory?

Market jitters or smart profit-taking?

While retail FOMO fueled the last rally, institutional players are now eyeing exits. The ‘number go up’ mantra isn’t resonating like it did during the 2024 halving frenzy. Even your Uber driver stopped giving unsolicited crypto advice.

Timing the dip or missing the boat?

History says corrections follow overheated markets. But with Bitcoin, ‘overheated’ is a relative term—ask anyone who bought at $3K and sold at $30K. Meanwhile, Wall Street’s still trying to explain NFTs to their compliance departments.

One thing’s certain: when the suits start losing interest, volatility follows. Buckle up.

Declining Demand from US Investors

Utilizing the Coinbase Premium Index, a measure that compares Bitcoin’s price on Coinbase against other exchanges, Arab Chain highlights a clear downward trend in demand from American investors as prices have risen above the $105,000 mark.

Arab Chain notes that although the Coinbase Premium Index remains slightly positive, indicating a minimal premium on Bitcoin in US markets, the significant reduction in this premium suggests declining enthusiasm at current price levels.

Historically, strong buying interest from US investors has typically occurred when bitcoin was priced under $105,000, suggesting that current valuations may be too elevated for many investors seeking favorable entry points. The analyst specifically noted:

The index shows a significant decline in U.S. investor demand for Bitcoin. However, it remains in positive territory, indicating U.S. investors are not as active in purchasing Bitcoin at current prices compared to when it traded below $105,000.

The trend suggests many potential buyers might be holding off, anticipating better opportunities should prices dip again.

Bitcoin Long-Term Holders Begin Profit-Taking

Adding further context, another CryptoQuant analyst, Burak Kesmeci, identified emerging patterns among long-term Bitcoin holders at the key psychological resistance level of $120,000.  According to Kesmeci, long-term holders have recently transitioned into net-negative territory, signaling initial phases of profit-taking.

Such moves typically indicate that veteran investors, many of whom may have held Bitcoin through previous market cycles, are beginning to liquidate portions of their holdings to capitalize on recent gains.

Kesmeci highlighted the importance of monitoring this activity closely, pointing specifically to institutional involvement:

One significant case to note is Galaxy Digital, reported to have sold approximately 80,000 BTC. Such sizeable institutional activity indicates this is more than typical retail profit-taking.

This development raises questions regarding future market behavior, whether the current sell-off by larger holders represents strategic repositioning or signals broader market concerns.

Featured image created with DALL-E, Chart from TradingView