Bitcoin Price Surge Driven by Offshore Traders, Not US Investors

Bitcoin's price surge above $80,000 has been attributed to leveraged trades rather than strong participation from US-based investors. According to CryptoQuant, offshore traders have been driving the rally, willing to pay more for bitcoin than their US counterparts.

This divergence in demand is evident in the Coinbase Premium, which measures the price gap between bitcoin on Coinbase and offshore exchanges. The premium has remained negative since late April, indicating that offshore traders are outbidding US investors.