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Bitcoin buying interest in the US recently jumped to a 39-day high after the US Federal Reserve hinted that interest rate cuts were on the horizon.
According to Julio Moreno of CryptoQuant, this increase in demand was linked to signals from the Fed that a cycle of interest rate cuts was about to begin.
Coinbase Premium Index
On August 23, the Coinbase Premium Index, which tracks the price difference between Bitcoin on Coinbase Pro and Binance, jumped to its highest level since mid-July, reaching 0.0114. The index is often used to gauge U.S. investor demand relative to the global market, with positive readings indicating buying pressure.
The surge in interest coincided with Fed Chairman Jerome Powell's speech at the Jackson Hole Symposium, where he suggested policy adjustments were coming, although he did not specify when interest rates would begin to fall.
This sign of a potential change in monetary policy has increased optimism among Bitcoin buyers.
Connected
The biggest price breakout
Crypto trader and analyst Ali Martinez pointed It turns out that the Bitcoin bull/bear market indicator has been fluctuating between bearish and bullish zones since early August.
Now, however, Martinez says sentiment has turned bullish again, suggesting a potential major breakout in Bitcoin's price. He shared a chart highlighting the key metric, which recently turned bullish after a long period of indecision.
Historically, such changes in the indicator have preceded significant bullish surges in the Bitcoin price, indicating a high probability of another rally in the near future.