US Bitcoin Demand Evaporates: Investors Chase Chip Stocks, BTC Price Suffers
US Bitcoin demand has hit an eight-week low, marked by a persistently negative Coinbase Premium Index. This exodus coincides with a historic rally in semiconductor stocks, drawing capital away from both Bitcoin and gold ETFs. The divergence signals a potential continued downtrend for BTC if US buyers don't return.
US Bitcoin buyers have vanished, with the Coinbase Premium Index stuck in negative territory for eight straight weeks – the longest dry spell in over a year. This signals American investors are paying less for BTC than the global market, a clear sign of fading domestic demand. Since May 6, when Bitcoin flirted with $81,429, the price has plunged 27% towards $59,500. This isn't the first time; a similar pattern in January saw BTC drop 33% as demand dried up. The money isn't just sitting idle; it's flowing into a scorching hot semiconductor sector. Chip stocks have outperformed the S&P 500 by a staggering 85% this year, a record not seen since the dot-com bubble. Since April, US Bitcoin and gold ETFs have bled $12 billion, while chip ETFs have raked in $20 billion. This rotation is a stark indicator of where capital is migrating. While Bitcoin and the Nasdaq usually move in lockstep, semiconductors have driven nearly 70% of the tech sector's gains, creating a divergence. If US buyers don't re-enter the market and the chip rally continues, BTC's path of least resistance points lower.