Bitcoin's Rebound Faces Hurdles as U.S. Buying Interest Remains Weak

Bitcoin's rebound has been facing challenges as it struggles to break through the $80,000 level due to persistent weakness in U.S. buying interest.

The Coinbase premium, which compares the price difference of Bitcoin between Coinbase and international trading platforms, has remained negative for over four consecutive months, indicating a lack of sustained buying pressure from the United States.

Industry research firm Glassnode noted that inflows into spot Bitcoin ETFs have been volatile, with significant outflows on two trading days last week. This volatility raises questions about the strength of the current rebound.

Glassnode also stated that a portion of the August rally was driven by short covering, rather than genuine buying interest. Analyst Tony Sycamore from IG Australia echoed this view, saying 'We believe that a substantial part of this rally was driven by short covering...'