US investor interest in Bitcoin has hit a 39-day high after the US Federal Reserve confirmed that a rate cut cycle is approaching, according to new data.
“Bitcoin demand in the US spiked today as the Fed hinted that a rate cut cycle is about to begin,” CryptoQuant analyst Julio Moreno shared in an August 24 post on X.
On August 23, Bitcoin's Coinbase Premium Index spiked to a 39-day high | Source: CryptoQuant/Julio Moreno
Moreno's assessment is based on the Coinbase Premium Index, which measures the difference in Bitcoin prices on Coinbase Pro and Binance, and is used as an indicator of US investor interest relative to the rest of the world.
The index just hit its highest level since July 15, hitting 0.0114.
Positive readings indicate increasing buying pressure, while negative readings may signal an impending sell-off. Prior to “Crypto Black Monday” on August 5, when Bitcoin fell below $50,000, the Coinbase Premium Index dropped below -0.10.
The surge in demand came shortly after Fed Chairman Jerome Powell reassured that a rate cut was possible, although he did not give a specific timeline.
“It is time for a policy adjustment,” Powell said at the annual symposium in Jackson Hole.
Just hours before the Fed announcement and Bitcoin price explosion, the coin was still hovering around $60,000, amid concerns about selling pressure from miners as the cost of mining Bitcoin remained at $72,224.
Crypto analyst Will Clemente commented in an August 23 post that “there are 7 days left in the month, but there is no denying that the market has considered sub-$60K BTC as value for the past 6 months.”
At the time of writing, Bitcoin is trading at $64,300, up 5.5% since August 22, according to CoinMarketCap data.
Bitcoin price has surged close to $65,000, peaking at $64,769 – a level not seen since August 2.
Source: https://tapchibitcoin.io/coinbase-premium-cua-bitcoin-dat-muc-cao-nhat-trong-39-ngay-khi-gia-vuot-63k.html
