Europe's Bitcoin Demand Outpaces US Interest, Contradicting Recent Price Surge
Bitcoin's recent price surge can be attributed to the growing demand for the cryptocurrency in Europe, which has outpaced interest in the US. According to TradingView, the European Bitcoin market has gained 4% since early September, while the US market has declined by 3% over the same period.
The price of Bitcoin has been steadily increasing, reaching over $87,000 in mid-September and stabilizing in the $83,000 to $85,000 range. One indicator of this trend is the Coinbase Premium Index, which compares the price of Bitcoin on Coinbase to its price on global platforms like Binance. When the index is positive, it means Americans are paying a premium to buy Bitcoin, while a negative index suggests they're bidding below the rest of the world.
However, the data suggests that US demand for Bitcoin may be uneven. The Coinbase Premium Index has been negative for 29 consecutive days, ranging from -0.01% to -0.03%. Additionally, CryptoQuant's apparent spot demand metric showed a contraction of around 170,000 BTC over the 30 days leading into early October. This contraction in demand may indicate that the recent price surge was built on thinner support than the price chart suggests.