• U.S. investors were gradually beginning to buy BTC after a period of selling.
• Market participants were overall bullish on BTC’s price rise, as buying volume remained higher than selling volume.

Bitcoin[BTC] has continued to stay above $100,000 after crossing it on the 17th of January. A 24-hour gain of 2.14% supports its continued hold in this region, suggesting sufficient buying pressure in the market.

AMBCrypto found that U.S. investors are beginning to rekindle their interest in BTC. Combined with the overall bullish sentiment, this could play a role in the asset establishing a new price threshold.

U.S. investors begin to buy BTC

There’s been a surge in buying activity from U.S. retail investors, as indicated by the Coinbase Premium Index on CryptoQuant.

This metric compares the price gap between BTC on Coinbase and Binance. A positive index suggests bullish sentiment, while a negative reading indicates bearish sentiment.

At the time of writing, the index has a current reading of 0.0154—slightly in the positive zone. This suggests that investors have turned bullish on BTC and started buying, though not in full force, as the index remains close to the negative zone.

AMBCrypto found that this slight move could be influenced by other investors taking profit on BTC.

This was determined through BTC’s Adjusted Spent Output Profit Ratio (aSOPR), which measures the profitability of spent Bitcoin outputs. It indicates whether Bitcoin is being sold at a profit (aSOPR > 1) or a loss (aSOPR < 1).

Currently, the aSOPR has a reading of 1.11, a notable increase from the previous day’s 1.06. This suggests that more investors are selling BTC at a profit.

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Author: Olayiwola Dolapo