Bitcoin buyer interest in the United States hit a 39-day high following the US Federal Reserve further confirming that interest rates were due to fall, according to recent data.
“Bitcoin demand in the US spiked today as the Fed signaled the cycle of lower interest rates will begin,” CryptoQuant Julio Moreno wrote in an Aug. 24 X post.
On Aug. 23, Bitcoin’s Coinbase Premium Index spiked to its highest point in 39 days. Source: CryptoQuant/Julio Moreno
Moreno’s claim was based on the Coinbase Premium Index, which measures the gap between Bitcoin’s (BTC) price on Coinbase Pro and Binance and used as an indicator of US investor demand compared to the rest of the world.
The indicator hit its highest point since July 15, reaching 0.0114.
While positive readings suggest buying pressure, negative readings can signal a sell-off is happening. Just before “Crypto Black Monday” on Aug. 5, when Bitcoin’s price fell below $50,000, the Coinbase Premium dropped below -0.10.
The increase in demand came after Fed Chair Jerome Powell assured the public that interest rate cuts were likely, but he didn’t specify when.
“The time has come for policy to adjust,” he said during a speech at the annual Jackson Hole symposium.
At the time of publication, Bitcoin is trading at $63,978, up 5.46% since Aug. 22, according to CoinMarketCap data.
Bitcoin surged toward ,000 but couldn’t hold that level. Source: CoinMarketCap
Bitcoin’s price spiked to just shy of the $65,000 mark, reaching $64,769 — a level it hadn’t hit since Aug. 2.
Cointelegraph recently reported that Powell’s event, which markets had keenly watched for policy easing cues, saw a dovish Powell herald an “appropriate dialing back of policy restraint” while not giving a concrete timeline for the cuts to begin.
Related: Bitcoin’s bull rally will continue another 350 days: Bybit
Just hours before the Fed’s announcement and Bitcoin’s price surge, Bitcoin was hovering around the $60,000 mark, with concerns about potential selling pressure from miners due to the cost of mining Bitcoin remaining at $72,224.
Crypto analyst Will Clemente stated that “there’s still 7 days left in the month, but there’s no denying that the market has seen sub $60k BTC as value for 6 months now,” in an Aug 23 post.
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