Bitcoin Rally Falters on Weak US Demand

Bitcoin's latest rally is facing skepticism due to weak demand from US investors. Despite some positive signs, such as increased inflows into US-listed spot Bitcoin exchange-traded funds in August, these have been inconsistent. In fact, two days of sizable outflows were reported in the past week.

The Coinbase premium, which compares prices on the country's largest exchange to international platforms, has been negative for over four months. This is a sign that American demand for Bitcoin remains weak, even during last month's rally.