Recent analysis indicates that interest in Bitcoin among United States buyers has reached a significant peak, marking a 39-day high. This spike in demand correlates with the United States Federal Reserve’s renewed signals hinting at a trend toward lower interest rates. According to Julio Moreno from CryptoQuant, this increase in Bitcoin interest is directly linked to the Federal Reserve’s acknowledgment that it will soon embark on a cycle of interest rate reductions.

“Bitcoin demand in the US surged today as the Fed indicated that the era of lower interest rates is on the horizon,” noted Moreno in a post on X dated August 24. He substantiated his assertion with findings from the Coinbase Premium Index, a vital metric that gauges the price difference between Bitcoin on Coinbase and other exchanges. The index reached its peak since July 15, recording a value of 0.0114. Positive readings from this index generally signal increased buying pressure, while negative values may reflect sell-off conditions. For instance, prior to the significant decline known as “Crypto Black Monday” on August 5, the index plummeted below -0.10 just as Bitcoin’s value fell under $50,000.

The latest uptick in demand followed comments from Fed Chair Jerome Powell assuring the public of impending interest rate cuts, though he refrained from providing any specific timeline for these changes. During his address at the annual symposium in Jackson Hole, Powell emphasized, “The time has come for policy to adjust.”

At the time of this report, Bitcoin is valued at $63,978, reflecting a 5.46% increase since August 22. Additionally, Bitcoin’s price approached the $65,000 threshold, reaching $64,769—its highest level since August 2. Prior reporting by Cointelegraph highlighted that Powell’s address, whose contents were closely monitored by market participants for signs of easing policy, revealed a dovish stance that suggested a careful tapering of policy restraints, albeit without a definitive start date.

Moreover, prior to the Fed’s announcement and Bitcoin’s subsequent price increase, Bitcoin was fluctuating just above the $60,000 mark, with apprehensions persisting regarding potential selling pressure from miners. This concern arises owing to the current cost of mining Bitcoin, estimated at $72,224. Crypto analyst Will Clemente remarked, “While there are still seven days remaining in the month, it is evident that the market has begun to accept sub $60,000 Bitcoin as a valuation benchmark for approximately six months now.”

In conclusion, Bitcoin’s recent performance and the Coinbase Premium Index’s resurgence underscore a promising outlook amidst favorable monetary policy shifts, potentially paving the way for sustained growth in buyer interest.

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