US-Based Investors Show Reduced Bitcoin (BTC) Trading Activity

Decreased Bitcoin (BTC) valuation has had a dampening effect on the volumes of trade at prominent crypto exchange Coinbase.

Negative shifts in the Coinbase Premium Index (CPI) serve as an indicator for these trends.

U.S. Investors Withdraw from Bitcoin Holdings

Examining on-chain metrics reveals that currently, the Bitcoin Coinbase Premium Index stands at -0.003. This value represents the comparative prices of BTC on Coinbase against those on Binance.

A heightened value illustrates more trading on Coinbase by investors from the United States. In contrast, a negative value points to lesser exchange activity.

Supporting this is the trend in the Coinbase Premium Gap (CPG), currently at -2.1%, also suggesting diminished acquisition impetus among U.S. based investors.

In a BeinCrypto conversation, CryptoQuant’s Head of Research Julio Moreno substantiated the lower Bitcoin trade volumes in the U.S., stating

“The Inter-exchange Flow Pulse (IFP) indicator now reflects a downtrend in U.S. investor demand for Bitcoin which historically correlates with declining Bitcoin prices.”

The IFP monitors the transfer of Bitcoins between different exchange types to infer investor sentiment and anticipate possible price movements.

A rising IFP implies a shift of assets from spot to derivative exchanges, indicating preparatory steps for speculative price gains. A falling IFP, conversely, shows assets moving to spot exchanges from derivatives, hinting at a selloff or a decrease in leveraged positions.

Learn more: Top Bitcoin Holders in 2024

Currently, with a declining IFP at 649,500 and a price below the 90-day norm, Bitcoin mimics its previous conditions observed between December 14, 2023, and February 24, 2024, where it receded from a high of $46,000 to $39,000.

Future BTC Valuation: Possibility of Falling Beneath $58,000?

Bitcoin is trading at $58,633 at the present time, with prevalent bearish outlooks possibly ushering in another slip below the $58,000 mark.

The Parabolic Stop and Reverse (SAR) indicator illustrates this sentiment with its dots stationed above the BTC price since July 4, signaling bearish trends.

Should the situation endure, Bitcoin may well descend to a lower support level of $57,983.

Conversely, with an upswing in trading activity, Bitcoin may surge towards a valuation of $59,737.