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Many investors watch Bitcoin’s price every day, happy when it rises and worried when it falls, but overlook a more important question: who exactly is buying?
Recently, the premium index has been negative for 44 consecutive days, making it a signal that has drawn attention in the crypto market.
Put simply, if Bitcoin’s price is lower than on other major trading platforms, it usually indicates relatively weak buying demand in the U.S. market.
This does not mean there are no buyers in the U.S. market at all; rather, relative price performance reflects insufficient buying pressure.
For Bitcoin, the source of capital is very important. If demand in the U.S. market remains weak and capital from other regions cannot keep stepping in over the long term, the sustainability of price gains may be tested.
Conversely, if the premium index turns positive again in the future, that could be an important clue that U.S. buying is recovering.
So, rather than guessing every day whether Bitcoin will rise or fall tomorrow, it’s better to watch where capital is coming from and where it is going.
Price tells you what is happening in the market, while capital flows may help you understand why. $AMD