The U.S. Federal Reserve’s recent indications that interest rate reduction were imminent caused buyer interest in bitcoin to soar to a 39-day high.
Julio Moreno of CryptoQuant claims that the Fed’s indications that a cycle of lower interest rates was about to start were the reason for this spike in demand.
Coinbase Premium index
The Coinbase Premium Index, which measures the difference in price between Bitcoin on Coinbase Pro and Binance, surged to 0.0114 on August 23, the highest level since mid-July. Positive readings on this index indicate purchasing pressure, and it is frequently used to measure U.S. investor demand in relation to the worldwide market.
The Fed Chair Jerome Powell’s address at the Jackson Hole symposium, in which he hinted at impending policy changes but did not provide a timeline for interest rate decreases, coincided with this spike in interest.
The possibility of a change in monetary policy was suggested, which gave Bitcoin buyers hope.
https://x.com/jjcmoreno/status/1827074576565567882
Biggest price breakout
Since early August, Bitcoin’s bull-bear market indication has been oscillating between bearish and bullish zones, as noted by cryptocurrency trader and analyst Ali Martinez.
Martinez now notes that there is a return to optimistic feeling, indicating a possible significant breakout in the price of Bitcoin. He provided a chart that showed this important indicator, which after a protracted period of uncertainty, just became positive.
Such changes in the indicator have historically preceded notable bull runs in Bitcoin, indicating a high probability of an impending rise.
