Demand for BTC and ETH Exposure Weakens as US Investors Turn Cautious: CryptoQuant

All figures on the spot, futures and derivatives markets point to profit taking rather than renewed accumulation among investors

The cryptocurrency market is facing a decline in momentum, impacting all sectors in the ecosystem, especially areas related to investors in the United States.

A report of CryptoQuant revealed that US investors are showing a slowdown in demand for bitcoin (BTC) and ether (ETH). This sluggish pace extends to both the spot and derivatives markets, following a significant rally in late September that pushed BTC and ETH to $126,000 and nearly $5,000, respectively.

Demand for BTC and ETH is decreasing

During the last rally weeks ago, investor interest in exposure to BTC and ETH increased, as reflected in the demand for these assets and their related products. As enthusiasm wanes, US investors – both retail and institutional – have become cautious in their approach.

CryptoQuant stated that all statistics in the spot, futures and derivatives markets indicate profit-taking rather than renewed accumulation among investors. Data analyzed by experts collectively points to cooling sentiment among investors. This also suggests that US market participants are waiting for new catalysts before re-entering the risk market.

Outflows now dominate the US Bitcoin and Ethereum exchange-traded fund (ETF) markets. The seven-day average net outflow from spot Bitcoin ETFs is 281 BTC, which amounts to $30.6 million in negative flows. CryptoQuant states that this is one of the weakest records for these Bitcoin products since April, indicating that ETFs acted as net sellers of BTC last week.

In terms of Ethereum ETFs, inflows have declined since mid-August and are currently close to zero.

Derivatives markets are feeling the heat

Furthermore, Coinbase’s price premium indicates that spot demand on US crypto exchanges has declined. The metric’s 24-hour moving average falls near zero for the first time since September 8. Positive currency base premiums generally indicate higher prices on the exchange, an indication that demand is growing faster in the US.

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Meanwhile, investor demand in the Bitcoin and Ethereum futures markets is at low levels. This can be seen in the year-over-year decline in Chicago Mercantile Exchange (CME) futures. For Bitcoin, the benchmark has fallen to 1.98%, the lowest in more than two years. For Ethereum, the indicator has fallen to 3.0%, the lowest since July 29. This indicates that demand for Bitcoin and Ethereum futures with expiration dates six months or more away has declined as both assets reached all-time highs.