After hitting a new all-time high of $122,920 on Monday, Bitcoin’s price has entered a sideways trend. The slowdown suggests fading momentum as traders lock in profits.
US Investors Pull Back, Increasing Consolidation Risk
Recent on-chain data reveals declining activity among US-based traders, raising the possibility of an extended consolidation or even a short-term correction.
According to CryptoQuant, Bitcoin’s Coinbase Premium Index (CPI)—a key indicator of US investor sentiment—has dropped steadily over the past week. Yesterday, it hit a seven-day low of -0.017.
What Does the CPI Signal?
The CPI measures the price difference between Bitcoin on Coinbase (US) and Binance (global markets).
- When CPI rises: BTC trades at a premium on Coinbase, indicating strong US demand.
- When CPI falls or turns negative: US buying interest lags behind global markets.
Currently, the negative CPI suggests profit-taking or weakening demand from US investors, contributing to Bitcoin’s stagnant price.
Spot BTC ETF Inflows Also Decline
The cooling sentiment is further reflected in spot Bitcoin ETF inflows, which have slowed since the start of the week.
Data from SosoValue shows that while BTC ETFs still see net inflows, the volume has steadily decreased. This signals a slight pullback in institutional participation.
Key Levels to Watch: $118K or $122K?
With US demand waning, Bitcoin’s bullish momentum may be fading. If the trend continues, BTC could drop toward $118,851.
However, if US investors return and accumulation increases, Bitcoin could reclaim its all-time high and push beyond $122,000.
