Geopolitical tensions have impacted the crypto market, causing a significant drop, though demand from US investors remains strong.

US Investor Demand Remains Strong

Despite Bitcoin's drop below $60,500, analysts note steady demand from US investors, which may support Bitcoin against bearish trends. An October 3 post from CryptoQuant indicated a potential short-term price increase, based on the Coinbase Premium Index.

Record Bitcoin Outflows from Exchanges

According to CryptoQuant, Bitcoin experienced its largest outflow from exchanges since November 2022, signaling a shift in market sentiment. The data shows a significant increase in outflows, possibly foreshadowing a price increase.

Impact on Bitcoin Price

Analysts note that the current rise in Coinbase Premium might indicate a potential Bitcoin price recovery. Investors moving Bitcoin to private wallets create a supply shortage on exchanges, which can exert upward pressure on price.

Despite current geopolitical tensions affecting the market, the steady demand from US investors and significant exchange outflows provide a basis for a potential future recovery in Bitcoin prices.