Originally published on: August 24, 2024
The United States witnesses a surge in Bitcoin buyer interest, hitting a 39-day peak following the US Federal Reserve’s recent confirmation of upcoming interest rate cuts. As reported by CryptoQuant’s Julio Moreno on August 24, the US market showed increased demand for Bitcoin with the announcement of impending interest rate adjustments.
Coinbase Premium Index Hits a 39-Day High
On August 23, the Coinbase Premium Index, reflecting the price difference between Bitcoin on Coinbase Pro and Binance, soared to its highest level in 39 days, reaching 0.0114. This surge indicated a significant uptick in US investor demand compared to global trends, highlighting increased buying pressure in the market.
Impact of Monetary Policy on Bitcoin Price
Fed Chair Jerome Powell’s announcement of potential interest rate cuts further fueled the surge in Bitcoin demand. Powell’s remarks at the annual Jackson Hole symposium implied an imminent policy adjustment, driving market optimism and boosting Bitcoin’s price to $63,978 as per CoinMarketCap data, marking a 5.46% rise since August 22.
Market Response and Price Movements
Although the price briefly flirted with the $65,000 level, reaching $64,769, it could not sustain the peak attained on August 2. Powell’s dovish tone at the symposium hinted at an easing of policy restraint without specifying a definite timeline for rate cuts, keeping markets on edge.
Bitcoin’s Strong Hold
Despite concerns of potential selling pressure from miners, with the high cost of Bitcoin mining at $72,224, the market sentiment remains bullish. Crypto analyst Will Clemente’s observation on August 23 underscores the market’s continued resilience, emphasizing the ongoing value of Bitcoin below $60,000 for the past six months.
In Conclusion
As Bitcoin’s price trajectory remains unpredictable amid evolving market dynamics, the recent surge fueled by US demand and Federal Reserve signals signifies an interesting phase for crypto enthusiasts and investors.
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**Key Takeaways:**
– Bitcoin’s Coinbase Premium reaches a 39-day high in response to Federal Reserve’s interest rate cues.
– US market leads the demand surge in Bitcoin, showcasing increased buying pressure.
– Powell’s dovish tone at Jackson Hole symposium boosts Bitcoin price to $63,978, amid market speculation.
– Market resilience continues despite mining cost concerns, signaling ongoing value for Bitcoin investors.
