Exploring the U-Turn in US Market Sentiment toward Bitcoin: An Insightful Report Reveals

Key Points

• Bitcoin experienced a decline following negative consumer reports, with exchange inflow significantly increasing.
• The U.S. Consumer Confidence Report and concerns over inflation and tariffs have influenced investor behavior, leading to a surge in Bitcoin selling.

Bitcoin [BTC] has recently been under significant downward pressure, reaching a three-month low of $85k.

This decline came about as the U.S. Consumer Confidence Report was published, leading to an influx of panic among investors and a consequent surge in exchange inflow.

Bitcoin’s Exchange Inflow and Market Fears

CryptoQuant reported that Bitcoin’s exchange inflow exceeded 5k BTC three times in a single day following the U.S. consumer confidence report’s release.

The report indicated a decline in consumer confidence to an eight-month low, fueled by increasing concerns about inflation and new tariffs imposed under the second Trump administration.

These market fears were evident in Bitcoin’s performance over the past day, as evidenced by a negative Coinbase premium index.

Implications for Bitcoin

When the Coinbase index is negative, it implies that U.S. investors, particularly institutions, are bearish and are selling BTC at a higher rate than they are buying.

This scenario resulted in panic selling, with over 15k BTC being sent to exchanges.

The influx resulted in the exchange netflow reaching a monthly high of 8.4k BTC, suggesting that Bitcoin has experienced more inflow than outflow, indicating increased selling.

The rising Exchange Inflow indicates that BTC is currently experiencing high selling pressure.

The Taker Buy-Sell Ratio turning negative and remaining in this zone over the past five days further substantiates this.

This sustained negative period suggests that Bitcoin holders are selling, thus reducing demand for the asset.

Unless macroeconomic conditions improve, Bitcoin is likely to experience further losses.

If these conditions worsen, Bitcoin could potentially drop to $86k. However, if external factors stabilize, Bitcoin could start to recover and reclaim $90k.