US Investors Drive Bitcoin, Ethereum, Dogecoin Price Crash

Market data reveals a clear geographic pattern behind the recent cryptocurrency downturn, with the United States emerging as the primary source of selling pressure. According to crypto pundit Crypto Rover, the U.S. trading session has been the weakest this month, with Bitcoin suffering a loss of approximately 12% during American market hours since the start of November. This U.S.-led decline has dragged down Ethereum and Dogecoin prices in tandem, creating a broad-based crypto market correction.

The pattern described by analyst Bossman illustrates a cyclical market dynamic: ‘Every single American session is marked by relentless selling for hours. Meanwhile, the Asians wake up, buy it all back, and then the Americans wake up, and the selling begins again.’ This repetitive cycle has created sustained downward pressure on cryptocurrency prices, with the European Union session showing similar weakness with approximately 12% Bitcoin declines, while Asian markets have remained remarkably stable with only about 2% drawdown since November began.

The selling pressure appears heavily institutional in nature, with market commentator Zerohedge attributing increased volatility around U.S. market openings to the ’10 am slam’ by market algorithms. This algorithmic trading behavior suggests sophisticated institutional players are actively contributing to the downturn. Supporting this thesis, Bitcoin ETFs have recorded significant outflows, with SoSoValue data showing five daily net outflows over the last seven days.

Crypto researcher Kyle Soska characterized the current situation as ‘a derisking event by U.S.-based entities, likely a combination of ETF users and large private, ultra-high-net-worth individuals.’ This institutional retreat from cryptocurrency positions has accelerated the price declines across major digital assets, with Bitcoin trading around $85,000 at the time of writing, down over 6% in the last 24 hours according to CoinMarketCap data.

The Coinbase Bitcoin premium index, a key indicator of U.S. investor sentiment, remains firmly in negative territory according to CoinGlass data. A negative premium indicates that Bitcoin prices on the U.S.-based Coinbase exchange are lower than the global average price, signaling particularly weak demand from American investors compared to their international counterparts.

Kyle Soska noted that the current Coinbase-Binance spot discount of approximately -$110 represents a significant deviation from normal market conditions, where the premium typically ranges around $40. He suggested that ‘the first of a near-term bottom would be a mean reversion of the Coinbase-Binance spot discount from its current level of around -$110 back to a more normal level range of around $40.’ This metric provides a quantifiable measure of when U.S. selling pressure might be abating.

The stark contrast between regional trading sessions highlights the geographically concentrated nature of the current sell-off. While U.S. and European sessions have driven double-digit percentage declines, Asian markets have shown remarkable stability with minimal volatility. This divergence suggests that the fundamental appeal of cryptocurrencies remains intact in some regions, even as American investors retreat.

Historical patterns offer some hope for market stabilization. According to Soska’s analysis, the current ‘derisking event’ by U.S.-based entities has lasted roughly 10 days, placing the market ‘near the end of the selling episode based on historical data.’ This perspective suggests that the worst of the American-led selling pressure may be approaching its conclusion, potentially setting the stage for market recovery once U.S. investor sentiment improves and the Coinbase premium returns to positive territory.