Categories: MarketsMenafn

U.S. Bitcoin Demand Surges After Rate Cut Signal

Interest in Bitcoin among U.S. buyers hit a 39-day high following the Federal Reserve’s indication that interest rates could soon be lowered.

According to CryptoQuant analyst Julio Moreno, this increased demand was evident in the Coinbase Premium Index, which measures the price gap between Bitcoin on Coinbase Pro and Binance. The index reached 0.0114 on August 24, its highest level since July 15. Moreno posted on X, “Bitcoin demand in the US spiked today as the Fed signaled the cycle of lower interest rates will begin.”

The Coinbase Premium Index gauges U.S. investor demand relative to the rest of the world. Positive readings, like the recent one, suggest heightened buying activity, while negative readings can indicate selling pressure. Just before Bitcoin’s sharp decline on “Crypto Black Monday” on August 5, when prices dropped below $50,000, the index had fallen below -0.10.

The recent surge in demand was followed by comments from Federal Reserve Chair Jerome Powell at the annual Jackson Hole symposium. While he didn’t provide a specific timeline for rate cuts, Powell mentioned, “The time has come for policy to adjust,” which many interpreted as a signal that interest rate reductions are imminent.

Bitcoin Price Jumps as Buyers React to Fed’s Comments

Bitcoin’s price has risen 5.46% since August 22, reaching $63,978 at publication. The price briefly touched $64,769 on August 24, its highest point since August 2. Powell’s comments fueled this increase, prompting a flurry of buying activity.

Before the Federal Reserve’s announcement, BTC had hovered around $60,000. Market watchers were concerned about potential selling pressure from miners due to the elevated cost of mining, which remains at $72,224. However, the anticipated interest rate cuts shifted focus, driving prices upward despite those concerns.

Market Analyst Observations on Bitcoin Price Trends

Crypto analyst Will Clemente revealed the continued market perception of BTC as a valuable asset even during periods of lower prices. “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,” Clemente noted in an August 23 post.

Recent developments demonstrate how macroeconomic factors influence Bitcoin’s price movements. The Coinbase Premium Index serves as a key indicator of investor behavior in the U.S. market.

Jerry Rolon

After working for 7 years as a Internet Marketer, Jerry now aims to explore the journalistic side of Internet. With his impeccable knowledge in this domain, he churns out some of the best news articles from the internet niche. With respect to acedamics, Jerry earned a degree in business from California State University.

Recent Posts

Japan Launches Yen-Pegged Stablecoin Under New Regulations

Japan introduced its first yen-pegged stablecoin under domestic regulations on October 27, 2025, as startup…

1 day ago

Payments MCP: Coinbase links AI agents to crypto via x402

Coinbase has launched Payments MCP, a Model Context Protocol implementation that gives AI agents access…

5 days ago

Agrifi AGF Token Transforms DeFi with Real Farmland Utility and On-Chain Yields

Estonia, 22nd October 2025, ZEX PR WIRE, AgriFi, a blockchain-powered agricultural finance protocol, is redefining…

6 days ago

Ride the Festive Wave: From London to Manchester’s Christmas Markets with Global Airport Taxi

Manchester Christmas Markets — The Beating Heart of Britain’s Festive Season London, UK, 21st October…

6 days ago

Travel Smarter: Sky Bridge Cars Sets a New Benchmark for Heathrow Taxi Excellence

London, UK, 21st October 2025, ZEX PR WIRE, For millions of passengers travelling through Heathrow…

6 days ago

Top ICO 2025: IONIX Chain is the Best Crypto Presale for the Next 1000x Gains

Dubai, UAE, 21st October 2025, ZEX PR WIRE, In a year that’s already shaping up…

6 days ago