US Bitcoin Demand Increased After Fed Chair Speech
After Federal Reserve Chairman Jerome Powell's Jackson Hole symposium address, Bitcoin rose early Saturday. The newest on-chain observation shows that Bitcoin demand has increased in the last day due to possible interest rate reduction.
US BTC Demand Rises—Price Impact?
CryptoQuant's Head of Research Julio Moreno said on X that US Bitcoin demand had increased in the previous 24 hours. This growth followed the Fed's announcement of a lower interest rate cycle.
Lower central bank interest rates benefit riskier assets like Bitcoin, the world's biggest cryptocurrency. Falling interest rates reduce bond earnings, making cryptocurrencies more appealing to investors seeking greater payouts.
The BTC price premium on Coinbase, the biggest US cryptocurrency exchange, has reached its highest level since mid-July, according to Moreno. For perspective, the Coinbase premium is the differential between Coinbase and other worldwide centralized exchanges' coin values.
BTC Coinbase premium index chart: jjcmoreno/X
US investors are prepared to pay more for Bitcoin when Coinbase's BTC price premium rises. Since interest rate reduction and less lucrative conventional financial products are likely, this increased demand makes sense.
Increasing demand is excellent for Bitcoin because it means investors are gearing themselves for a bright crypto future. Growing demand and a higher price premium may increase market volatility.
US Bitcoin demand is rising at the opportune moment, since demand has been low for weeks. CryptoQuant said that BTC demand has been slow since April 2024, when the currency was at $70,000.
The blockchain intelligence group says BTC's price has to rise to see daylight. Investors may see the flagship cryptocurrency return to its all-time high if US demand continues to expand and spreads to other regions.
BTC is now at $64,000, up over 5% in a day. According to Coinmarketcap , the top cryptocurrency rose 7.5% last week.
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