Bitcoin slips to $59,000 despite increased demand from US investors

• Bitcoin price fell below $60,000 as investors started to take profits from last week’s rally.
• The CryptoQuant report states that Bitcoin has seen increased demand in the US, characterized by a high Coinbase premium.
• CCData shows an increase in BTC options open interest as investors eye the $100,000 price.

Bitcoin (BTC) fell below $60,000 on Friday after brief profit-taking from investors, according to CryptoQuant report. Meanwhile, CCData suggests that traders are bullish on a bullish move, as reflected in an increase in open interest (OI) for BTC options.

Bitcoin falls as option open interest rises

Bitcoin fell below $60,000 after a long week of profit-taking by investors and is currently trading around $58,800. Investors started to take profits after a brief rally last Saturday caused by the renewed possibility of interest rate cuts by the Federal Reserve (Fed) pushed Bitcoin above $64,000.

Despite the profit, Bitcoin’s profits amounted to just $536 million, far lower than the $10 billion and $9 billion recorded on May 27 and March 12, respectively, CryptoQuant noted in its latest weekly crypto report. This indicates that the market may not have reached the top of the cycle yet.

Profits made BTC

While the gain was minor, Bitcoin extended its weekly losses to 6.8% on Friday, according to Coingecko data.

Another major cause of the price decline appears to be the sustained declines in BTC demand growth, which has fallen considerably since April. Bitcoin’s 30-day demand growth has fallen from a three-year high of 496,000 BTC in early April to -36,000 BTC over the past month.

However, recent data suggests that Bitcoin may see renewed demand from US investors as Coinbase’s exchange premium hit a one-month high of 0.11 during the week, CryptoQuant analysts noted.

Additionally, CCData suggests that Bitcoin traders are highly bullish on a prevailing bullish trend, as reflected by an increase in options open interest (OI). The data indicated BTC options open interest rose 32.5% with a low put/call ratio since the beginning of the month. The Put/Call ratio is the total number of calls vs. puts in the asset options market.

BTC Options Open Interest

The data also suggests that investors are eyeing a $100,000 price level for Bitcoin, as evidenced by call options clustered around this price level. The sudden change in sentiment can be traced to traders’ anticipation of a Fed rate cut in September, as Bitcoin price tends to outperform in a low-interest environment.