Bitcoin Demand Peaks in the US as Fed Signals Interest Rate Cuts
According to recent data, the US Federal Reserve’s further confirmation that interest rates would eventually decline led to a 39-day peak in bitcoin buyer interest in the US.
Bitcoin demand in the US spiked today as the Fed signaled the cycle of lower interest rates will begin,
CryptoQuant Julio Moreno
The Coinbase Premium Index, which gauges the difference in price of Bitcoin between Coinbase Pro and Binance and serves as a gauge of US investor demand relative to global demand, served as the foundation for Moreno’s assertion. At 0.0114, the indicator reached its highest position since July 15.
Bitcoin Price Soars Following Powell’s Speech at Jackson Hole Summit
Positive readings indicate purchasing pressure, but negative readings may indicate a sell-off is taking place. Prior to August 5’s “Crypto Black Monday,” when the price of Bitcoin went below $50,000, the Coinbase Premium dipped below -0.10. Following Fed Chair Jerome Powell’s assurance to the public that interest rate reductions were likely—though he did not say when—demand increased. He declared at the annual Jackson Hole summit that “the time has come for policy to adjust.”
- According to CoinMarketCap data, as of the time of publication, the price of Bitcoin is $64.147, up 5.52% from August 22.
- Bitcoin’s price rose to $64,769, a level it has not reached since August 2, and pushed the $65,000 threshold.
Since the cost of mining Bitcoin was still $72,224, there were concerns about potential miner selling pressure prior to the Fed’s announcement and the ensuing price spike. At the time, Bitcoin was trading at about $60,000.
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