Bitcoin Market Sentiment Shifts to Risk-Off Amid Macro Deterioration

CryptoQuant's analyst Axel Adler has identified a shift in the market sentiment for Bitcoin. He believes that the cryptocurrency has entered a 'risk-off' phase, where investors are being more cautious and less aggressive with their trades. This shift is attributed to a sharp deterioration in the macro environment, which is having a significant impact on the market.

The analyst points out that despite some on-chain data indicating positivity, the market is currently lacking upward momentum. The 'Impulse' indicator, which tracks the trend of Bitcoin's price movements, has fallen below the zero axis, suggesting that any rebound in prices may be short-lived without confirmation from further indicators.

The analyst also highlights the importance of the US spot demand in determining the market sentiment for Bitcoin. He notes that the Coinbase Premium Index remains a key indicator of this demand, and when it consistently stays above zero, it indicates that US buying is still supporting the market. Conversely, if the index turns negative, even a price increase may lack genuine support from US demand.