$BTC Demand soars as Fed hints at lower interest rates
August 24, 2024. Interest in #Bitcoin in the United States recently hit a 39-day high, driven by indications from the U.S. Federal Reserve that a cycle of interest rate cuts could be on the horizon.
CryptoQuant's Julio Moreno attributed this surge in demand to signals from the Federal Reserve, which suggested a shift to 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, soared to its highest level since mid-July, reaching 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 surge in demand coincided with remarks from Federal Reserve Chairman Jerome Powell at the Jackson Hole symposium, where he hinted at upcoming policy changes, although the exact timing of interest rate cuts remains unclear. The possibility of a change in monetary policy has sparked renewed optimism among Bitcoin buyers.
Major Price Breakout on the Horizon
Cryptocurrency 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 is now reporting a shift back to bullish sentiment, indicating 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 shifts have preceded major Bitcoin bull runs, suggesting that another rally could be on the way.