Bitcoin Correction May Persist Amid Weakening U.S. Investor Demand and Market Dynamics

Key Points

1. The negative 60-day BTC premium shows reduced U.S. buying pressure, a key factor in Bitcoin’s price decline.

2. The 60-day BTC premium measures the price difference between Bitcoin on Coinbase and Binance, reflecting U.S. investor demand.

3. A negative premium indicates weaker U.S. demand, which can prolong corrections, as the U.S. market historically drives significant Bitcoin price movements.

4. The U.S. market’s influence stems from institutional and retail participation, regulatory impact, and liquidity.

5. Bitcoin has undergone several major corrections in the past, such as the 2017-2018 bear market and the 2021-2022 downturn.