Demand for Bitcoin is on the rise in the US, but there is a catch.

Demand for bitcoin (BTC) in the United States has been on the rise following Federal Reserve Chairman Jerome Powell's comments at the Jackson Hole Symposium last week. However, this increase did not extend to the rest of the crypto market.

According to a report by CryptoQuant, BTC rallied on the back of increasing investor interest in the US, but overall Bitcoin demand growth is at a low level and has remained negative over the past few weeks.

Bitcoin rallies amid increased demand

Increased demand for Bitcoin from US investors saw a rise in the Coinbase premium, rising to 0.11%, the highest level since July. An increase in this metric indicates that the domestic trading platform is seeing more interest from US investors than foreign exchanges.

CryptoQuant says this is a sign that BTC is starting to flow into Coinbase from trading platforms outside of the US, a movement that is usually seen during bull markets and is indicative of an upward trend in the price of Bitcoin.

The Interexchange Flow Pulse (IFP), which measures the one-year cumulative net flows of BTC between Coinbase and other exchanges, was also found to be an indicator that assets are flowing to the US-based crypto platform. Price premium and high demand in the US

In addition, demand for Bitcoin has increased with open interest in the perpetual futures market. OI rose from approximately 10,000 BTC to 276,000 BTC, indicating that traders are opening new long positions and buying orders are dominating sell orders.

Clear demand is still negative

As demand for Bitcoin in the US increased, the underlying price increased by 6%, moving from $60,000 to $65,000, the highest level since August 2. Despite this rally, investors did not participate in the accumulation of high profits. This was reflected in the profit of 536 million dollars, which is much more than the multi-billion dollars recorded at the top of the domestic market this year.

Moreover, the apparent 30-day growth of bitcoin demand has decreased from 496,000 BTC in early April to a negative 36,000 BTC. Apparent demand is the difference between the daily total bitcoin block subsidy and the daily change in the number of BTC that has remained static for a year or more.

CryptoQuant insists that the crypto market needs clear demand for Bitcoin before prices fully recover and reach new highs.