Bitcoin interest in the United States has surged to a 39-day high following signals from the Federal Reserve that interest rates are likely to decrease soon.
Rise in Bitcoin Demand
Julio Moreno, head of research at CryptoQuant, noted that Bitcoin demand spiked as the Fed suggested a cycle of lower interest rates could begin soon.
Coinbase Premium Index
This surge in demand is reflected in the Coinbase Premium Index, which measures the price difference between Bitcoin on Coinbase Pro and Binance. On the day of the [Fed's announcement](https://www.federalreserve.gov/newsevents/speech/powell20240823a.htm), the index hit 0.0114, its highest level since July 15. This positive reading indicates strong buying pressure in the US market.
Julio Moreno's Comment
Positive readings on the Coinbase Premium Index signal increased buying activity. In contrast, negative readings can suggest a sell-off. Just before 'Crypto Black Monday' on August 5, when Bitcoin's price fell below $50,000, the index dropped below 0.10. This significant drop signaled that selling pressure was mounting at the time.
In conclusion, the rise in Bitcoin interest in the US is driven by expectations of Federal Reserve rate cuts, providing supportive momentum for the cryptocurrency market.
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