$BTC Demand Soars as FED Hints at Lower Interest Rates

Aug 24, 2024, 15:40 GMT+5

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Bitcoin interest in the United States has recently reached a 39-day peak, driven by indications from the U.S. Federal Reserve that a cycle of interest rate cuts might be on the horizon.

CryptoQuant’s Julio Moreno attributed this surge in demand to the Fed's signals, which suggested that a shift towards lower interest rates could be imminent.

On August 23, the Coinbase Premium Index, which measures the price difference between Bitcoin on Coinbase Pro and Binance, spiked to its highest level since mid-July, hitting 0.0114. This index is a key indicator of U.S. investor demand relative to the global market, with positive readings reflecting buying pressure.

This rise in demand coincided with Fed Chair Jerome Powell’s remarks at the Jackson Hole symposium, where he hinted at upcoming policy changes, though the exact timing for interest rate cuts remains unclear. The potential for a shift in monetary policy has sparked renewed optimism among Bitcoin buyers.

Biggest Price Breakout on the Horizon

Crypto analyst Ali Martinez has noted that Bitcoin’s bull-bear market indicator has been oscillating between bearish and bullish zones since early August. However, Martinez now reports a shift back to bullish sentiment, signaling the possibility of a major Bitcoin price breakout.

He shared a chart illustrating this key metric, which recently turned bullish after a prolonged period of indecision. Historically, such changes have preceded significant Bitcoin bull runs, suggesting that another rally could be on the way.

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