All metrics in the spot, futures and derivatives markets point to profit-taking rather than renewed accumulation among investors.
The cryptocurrency market is facing a loss of momentum, which is affecting all sectors of the ecosystem, particularly areas linked to investors in the United States.
TO report of CryptoQuant revealed that US investors are showing a slowdown in demand for bitcoin (BTC) and ether (ETH). This slow pace extends to both the spot and derivatives markets, following a significant rally in late September that took BTC and ETH to $126,000 and nearly $5,000, respectively.
Demand for BTC and ETH weakens
During the latest rally a few weeks ago, investor appetite for exposure to BTC and ETH increased, as reflected in the demand for these assets and their related products. With enthusiasm waning, US investors (both retail and institutional) have become cautious in their approach.
CryptoQuant stated that all metrics in the spot, futures and derivatives markets indicate profit taking rather than renewed accumulation among investors. The data analyzed by experts together point to a cooling of sentiment among investors. This also suggests that market participants in the United States are waiting for new catalysts before re-entering the risk market.
In the US Bitcoin and Ethereum exchange-traded fund (ETF) market, capital outflows now dominate. The seven-day average net outflow from spot Bitcoin ETFs is 281 BTC, which is equivalent to $30.6 million in negative flows. CryptoQuant claims this is one of the weakest records for these Bitcoin products since April, indicating that ETFs acted as net sellers of BTC last week.
On the Ethereum ETF front, inflows have slowed since mid-August and are currently close to zero.
Derivatives markets feel the pressure
Additionally, the Coinbase price premium indicates that spot demand on US crypto exchanges has slowed. The metric’s 24-hour moving average is falling near zero for the first time since September 8. Positive coinbase premiums generally indicate higher prices on the exchange, an indication that demand in the US is growing faster.
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Meanwhile, investor demand in the Bitcoin and Ethereum futures markets is at low levels. This can be seen in the drop in the annualized basis of Chicago Mercantile Exchange (CME) futures. For Bitcoin, the metric has fallen to 1.98%, its lowest level in over two years. For Ethereum, the indicator has fallen to 3.0%, the lowest level since July 29. This indicates that demand for Bitcoin and Ethereum futures with expiration dates of six months or longer has declined as both assets have fallen from their all-time highs.
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