Bitcoin buyer interest in the United States recently surged to a 39-day high following hints from the U.S. Federal Reserve that interest rate cuts were on the horizon.
According to CryptoQuant's Julio Moreno, this uptick in demand was linked to the Fed's signals that the cycle of lower interest rates would soon begin.
#Bitcoin demand in the US spiked today as the Fed signaled the cycle of lower interest rates will begin. Price premium on Coinbase is the highest since July (green line). pic.twitter.com/X4RREm3Uxb
— Julio Moreno (@jjcmoreno) August 23, 2024
Coinbase Premium index
On Aug. 23, the Coinbase Premium Index, which tracks the price gap between Bitcoin on Coinbase Pro and Binance, spiked to its highest level since mid-July, reaching 0.0114. This index is often used to gauge U.S. investor demand relative to the global market, with positive readings indicating buying pressure.
This surge in interest coincided with Fed Chair Jerome Powell’s speech at the Jackson Hole symposium, where he suggested that policy adjustments were coming, though he did not specify when interest rate cuts would begin.
This indication of a potential shift in monetary policy fueled optimism among Bitcoin buyers.
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Biggest price breakout
Crypto trader and analyst Ali Martinez has pointed out that Bitcoin's bull-bear market indicator has been fluctuating between bearish and bullish zones since early August.
However, Martinez now reports that the sentiment has shifted back to bullish, signaling a potential major Bitcoin price breakout. He shared a chart highlighting this key metric, which recently turned bullish after an extended period of indecision.
Historically, such shifts in the indicator have preceded significant Bitcoin bull runs, suggesting a strong likelihood of another rally on the horizon.
