Bitcoin buying interest in the United States has surged to its highest level in 39 days, following signals from the US Federal Reserve indicating a potential decrease in interest rates, according to recent data.
“Bitcoin demand in the US spiked today as the Fed signaled the cycle of lower interest rates will begin,” CryptoQuant's Julio Moreno stated in an August 24 post on X.
On August 23, the Coinbase Premium Index for Bitcoin reached its highest point in over a month. The Coinbase Premium Index, as explained by Moreno, measures the difference in Bitcoin prices between Coinbase Pro and Binance, serving as a gauge of US investor demand compared to global interest. The index hit a peak of 0.0114, the highest since July 15.
Positive readings on this index suggest increased buying pressure, while negative readings could indicate selling. Notably, before the market downturn dubbed "Crypto Black Monday" on August 5—when Bitcoin's price fell below $50,000—the Coinbase Premium had dropped to below -0.10.
The rise in demand followed remarks by Fed Chair Jerome Powell, who implied that interest rate cuts were likely but did not specify a timeline. “The time has come for policy to adjust,” Powell mentioned during his speech at the annual Jackson Hole symposium.
At the time of writing, Bitcoin is trading at $63,978, reflecting a 5.46% increase since August 22, according to CoinMarketCap data. The cryptocurrency briefly spiked to $64,769, its highest level since August 2.
Reports also noted that Powell's appearance, which was closely watched by markets for signs of policy easing, saw him express a dovish stance, suggesting an "appropriate dialing back of policy restraint," though without a specific timeline for when rate cuts might begin.
Just prior to the Fed’s announcement and the subsequent Bitcoin price surge, the cryptocurrency was hovering around $60,000 amid concerns of potential selling pressure from miners, as the cost of mining Bitcoin remained at $72,224.
Crypto analyst Will Clemente commented on August 23,
“There’s still 7 days left in the month, but there’s no denying that the market has seen sub $60k BTC as value for 6 months now.”
