As Bitcoin recovered the $63,000 mark, the Coinbase premium hit its highest level in 39 days. This was due to a rise in demand from U.S. investors who saw signs from the Federal Reserve that interest rates were going to be lowered soon.
Julio Moreno of CryptoQuant says that the demand for Bitcoin in the U.S. went through the roof after the Federal Reserve said it was going to lower interest rates. Moreno wrote about this trend on X on August 24.
Bitcoin Market Awaits Fed
He said that the Coinbase Premium Index, which measures the price difference between Bitcoin on Coinbase Pro and Binance, hit 0.0114, which was the highest number since July 15. This index shows how interested U.S. investors are compared to world demand. A positive reading means that buyers are looking to buy, and a negative reading means that sellers might be looking to sell.
In a speech at the Jackson Hole conference, Fed Chair Jerome Powell hinted that interest rates might be lowered soon, which happened at the same time as the rise in demand for Bitcoin. Powell didn’t say when these cuts would start, but he did stress that policy needs to be changed.
According to CoinMarketCap, Bitcoin was worth $63,978 at the time of this report, which is 5.46 percent more than it was on August 22. It went up to $64,769 for a short time, which was its best level since August 2.
Market experts were paying close attention to Powell’s comments for signs that policy would be eased. Even though Powell was dovish, he didn’t give a specific date for when rates would be lowered. This made the market wait for more news.
Before the Fed’s announcement and the following rise in Bitcoin’s price, the price of the cryptocurrency had been staying around $60,000. There were worries that miners might try to sell because it costs $72,224 to mine Bitcoin.
In a post on August 23, crypto expert Will Clemente said that the market has seen BTC price below $60,000 as a good chance for the past six months, even though there are still days left in the month.
