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Two Strong Indicators Show US Investors Are Flocking Back to Bitcoin
The latest market trends suggest a significant shift in the sentiment of US investors towards bitcoin and cryptocurrency. In the past few weeks, we have seen a substantial increase in the accumulation of bitcoin by US-based investors. This newfound enthusiasm is reflected in two key indicators: the Bitcoin ETFs’ net inflows and the Coinbase Premium Index.
Firstly, the Bitcoin ETFs’ saw their best day in over a month on Friday, with an impressive $908.1 million worth of investments flooding back into these funds. IBIT, the world’s largest Bitcoin ETF, was not far behind, attracting a staggering $253.1 million in just one day. Ark Invest’s ARKB also had a strong performance, garnering $222.6 million.
These numbers are a stark contrast to the preceding days, where we saw US investors pull funds out of riskier assets like bitcoin and cryptocurrency at an alarming rate. The rapid change in sentiment could be attributed to the new reality that inflation may not drop as rapidly as initially expected, prompting investors to reevaluate their positions and seek higher returns.
Secondly, the Coinbase Premium Index has also started trending upwards, returning to neutral territory after plummeting to a yearly low earlier this week. This metric measures the difference between Coinbase’s BTC price and Binance’s price. When it enters positive territory, it typically indicates that US-based investors are accumulating heavily and vice versa. The sudden upswing suggests that institutional investors are once again willing to take on risk, despite recent market volatility.
It is essential to note that while this news may seem like a sign of relief for bitcoin enthusiasts, it is still too early to say whether this trend will continue in the long term. Nevertheless, these indicators do demonstrate that US investors have started to regain confidence in the cryptocurrency space.
Jordan Lyanchev is an Assistant Editor-in-Chief at CryptoPotato. He has been involved with blockchain and cryptocurrencies since 2016 and is passionate about sharing his knowledge to educate new users about the world of crypto.
Source: cryptopotato.com
