Originally published on: August 24, 2024
Recent data indicates a surge in buyer interest for Bitcoin in the United States, with the US Federal Reserve hinting at potential interest rate cuts. According to CryptoQuant’s Julio Moreno, there has been a significant spike in Bitcoin demand as the Fed signals a cycle of lower interest rates.
The Coinbase Premium Index, which measures the gap between Bitcoin prices on Coinbase Pro and Binance, reached its highest point in 39 days on August 23. This increase in the index suggests a growing US investor demand compared to the global market.
Positive readings on the Coinbase Premium Index indicate buying pressure, while negative readings can signal a sell-off. Before the recent Bitcoin price dip below $50,000 on “Crypto Black Monday,” the index had dropped below -0.10.
Fed Chair Jerome Powell’s assurance of upcoming interest rate cuts has fueled this surge in demand. Although Powell did not specify a timeline for the cuts in his speech at the Jackson Hole symposium, Bitcoin’s price has seen a significant increase, trading at $63,978 at the time of publication.
Bitcoin briefly touched the $65,000 mark, hitting $64,769, a level not seen since early August. Despite concerns about potential selling pressure from miners due to the high cost of mining Bitcoin, the market has perceived sub $60k Bitcoin as valuable for the past six months.
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