Bitcoin Sees Strong US Buying Pressure Amid US Recession Fears
Highlights
- Bitcoin sees strong US buying pressure despite recession fears and market volatility.
- Coinbase Premium Index turns positive, indicating increased demand from US investors.
- Whales are accumulating BTC, signaling potential bullish momentum ahead.
- Bitcoin price rises 5% to $58,800 amid market turmoil and recession concerns.
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.
- Grayscale’s GDLC Fund Holding SOL and ADA Gets SEC Nod for NYSE Debut
- Crypto Market Rally: Will Bitcoin Catch Up With S&P 500 Gains After Fed Rate Cut?
- Ripple Partners DBS, Franklin Templeton To Launch Trading And Lending Backed by RLUSD
- XRP, SHIB, HBAR Among 15 to Get Faster Crypto ETF Approval Under SEC’s New Rule
- ‘Great Progress’: Cardano Founder Shares Update After CLARITY Act Roundtable
- Toshi Coin Gains 57% in One Day: What’s Driving the Sudden Upside?
- Shiba Inu Price Set to Soar as Exchange Reserves Dive Amid SHIB ETF Chatter
- Pepe Coin Price Prediction as Whale Moves $25M From Robinhood- Is a Breakout to $0.00002 Next?
- XRP Price Prediction as Market Longs Hit 78% amid VivoPower Treasury Expansion Launch — Is $4 Next?
- SHIB Price Forecast: Taker Buys Lead as Developers Counter Shibarium Exploit
- Solana Price Set for a 25% Jump as Open Interest Nears a $20 Billion Milestone
Why Trust CoinGape
CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
Premium Partners
