Bitcoin Hovers Below $120K as On-Chain Indicators Point to Slowing Demand

Bitcoin's price is hovering below its recent all-time high, trading at $119,343 with a 2% gain over the past week. The asset has pulled back slightly after reaching above $123,000 earlier this month. The market appears to be consolidating amid diverging signals from on-chain indicators and regional demand metrics. Recent analysis suggests a weakening appetite for Bitcoin in the US and South Korea, two markets that have historically contributed significant trading volume. The Coinbase Premium Index has failed to climb significantly, suggesting that US investors using Coinbase have not been aggressively buying Bitcoin during the rally. The index's movement toward negative territory may indicate profit-taking among American investors. Similarly, the Korea Premium Index has declined, signaling reduced demand from retail investors in South Korea. Exchange inflows have also increased, suggesting rising sell pressure and potential downward price pressure. This behavior may indicate institutional or fund-driven profit-taking, which has historically been followed by price corrections. The redistribution of capital from Bitcoin into other assets may benefit the broader crypto market, with altcoins potentially seeing renewed interest and increased volatility.