US Bitcoin Demand Drought Hits 78 Days as Citadel Signals Stock Market Reset
American Bitcoin demand has hit a record 78 consecutive days of negative Coinbase premium as US retail cash skipped crypto for AI equity trades. Citadel Securities sees July's market selloff as a bullish reset for stocks, but analysts at NYDIG warn that Bitcoin's recent rally is driven entirely by leverage. Without spot cash buyers stepping in, crypto derivatives remain primed for a sharp downside shakeout.
American demand for Bitcoin has gone cold for a record 78 straight days as the Coinbase Premium Index stays stuck in negative territory. While institutional giant Citadel Securities claims July’s violent stock selloff was merely a healthy reset for equities, capital rotated out of tech without flowing into crypto order books.
Retail traders liquidated leveraged tech products and shifted cash, yet spot BTC markets failed to capture the freed liquidity. Despite a modest rebound back above $63,000, market intelligence firm NYDIG warns that the latest recovery is heavily built on leverage rather than organic spot buying.
With rising open interest and positive funding rates lacking confirmation from ETF inflows or stablecoin expansion, derivatives positioning looks fragile. Unless spot US buyers step up to absorb the leverage, crypto faces a high risk of another forced flush lower.