Bitcoin is currently seeing strong buying pressure from U.S. investors, as reflected by the on-chain data. The US recession fear and the interest rate hike by the Bank of Japan (BOJ) have triggered a massive selloff recently in the broader financial market, let alone the crypto sector. However, with the recent dovish signal from BOJ, the highest crypto by market cap appears to be witnessing strong demand from the US traders.
Bitcoin Sees Strong Buying Pressure In US
The Bitcoin Coinbase Premium Index has turned positive for the first time since July 28, indicating increased demand for the cryptocurrency on the US-based exchange. According to CryptoQuant data, the premium gap reached 0.025 on August 7, signaling that investors are pouring money into Bitcoin.
This surge in demand comes despite soaring concerns over a potential US recession, fueled by weaker-than-expected jobs data and a rising unemployment rate. The Sahm Rule, a key recession indicator, was triggered as initial jobless claims came in softer than anticipated.
Meanwhile, the positive Coinbase Premium gap suggests that US-based traders are actively buying Bitcoin, driving up prices on the exchange. For context, a positive premium indicates that BTC price on Coinbase is surpassing that of other top crypto exchanges like Binance, signaling strong demand from US investors.
Notably, a negative premium suggests weak buying interest from US traders, indicating a lack of momentum in the market. Besides, this bullish trend is further supported by data showing BTC whales accumulating the cryptocurrency, signaling a potential bullish momentum ahead.
As recession fears mount, investors may be turning to the flagship crypto as a safe-haven asset, driving up demand and prices.
Also Read: MicroStrategy’s Michael Saylor Personally Holds $1 Bln In Bitcoin
US Recession Fear
The recent US job data has taken the financial market by storm, signaling a potential recession ahead. In addition, the hawkish stance of the BOJ has further weighed on the market sentiment, wiping off gains from the stocks and the digital assets.
However, the recent dovish stance from the BOJ appears to have allayed some concerns. Investors appear to be regaining confidence in the market, with many seeing Bitcoin as a safer haven during economic turmoil.
As of writing, BTC price rose nearly 5% to $58,800, with its trading volume dropping 1% to $41.32 billion. Notably, the crypto has dropped below $49,200 this week, indicating the highly volatile scenario in the market. Additionally, CoinGlass data showed that BTC Futures Open Interest soared over 3%, reflecting the bullish sentiment towards the flagship crypto.
Rupam Roy
Rupam, a seasoned professional with 3 years in the financial market, has honed his skills as a meticulous research analyst and insightful journalist. He finds joy in exploring the dynamic nuances of the financial landscape. Currently working as a sub-editor at Coingape, Rupam’s expertise goes beyond conventional boundaries. His contributions encompass breaking stories, delving into AI-related developments, providing real-time crypto market updates, and presenting insightful economic news. Rupam’s journey is marked by a passion for unraveling the intricacies of finance and delivering impactful stories that resonate with a diverse audience.
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
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