Demand for cryptocurrencies such as Bitcoin (BTC) remains weak in the U.S. despite a bounce higher in prices to start July.
Bitcoin is coming off a six-day winning streak, its longest since March. However, the gains might be fleeting as demand for digital assets appears to still be quite weak.
Coinbase Premium, which tracks the difference between Bitcoin's price on exchanges Coinbase Global (COIN) and Binance has now been negative for 50 consecutive days, according to data from Coinglass.
That reading indicates weak overall demand as it shows that, for close to two months, Bitcoin has been cheaper on Coinbase than Binance, which doesn't operate in the U.S.
The discrepancy is an indicator of relatively weak demand in the U.S., which is the world's biggest economy.
Historically, bull runs in Bitcoin and other cryptocurrencies have featured consistently positive Coinbase Premiums.
Another concerning trend is occurring in Japan, where bond yields keep rising. The 10-year bond yield rose to a 30-year high on July 7, lifting borrowing costs in the U.S. and other nations.
Rising Treasury yields are almost always a headwind for risk assets such as crypto.
Investors also received a gut punch to start the trading week after serial crypto acquirer Strategy (MSTR) revealed that it sold more than $200 million U.S. of Bitcoin last week.
Strategy, which is the largest corporate owner of Bitcoin in the world, had previously said it would never sell any of its BTC holdings.
Analysts continue to urge caution with Bitcoin, noting that the price needs to rise above resistance at $65,000 U.S. for it to achieve a meaningful recovery.
BTC is trading at $63,500 U.S. on July 7.
