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BTC $96,420 +2.34% ETH $3,280 +1.82% SOL $185.40 -0.92% BNB $642.50 +0.45% XRP $2.18 +3.12% DOGE $0.082 -1.50% ADA $1.05 +0.80% AVAX $42.10 +1.15%
BTC $96,420 +2.34% ETH $3,280 +1.82% SOL $185.40 -0.92% BNB $642.50 +0.45% XRP $2.18 +3.12% DOGE $0.082 -1.50% ADA $1.05 +0.80% AVAX $42.10 +1.15%
08/23/2024

Bitcoin's Coinbase Premium Hits 39-Day High as Price Reclaims $63K

Interest in Bitcoin from U.S. investors surged after the Federal Reserve confirmed it would cut interest rates. U.S. Bitcoin buyer interest hit a 39-day high after the Fed confirmed that interest rates would be cut, according to recent data. "U.S. Bitcoin demand increased strongly today as the Fed signaled that the rate-cut cycle will begin," CryptoQuant analyst Julio Moreno wrote on X on August 24. On August 23, Bitcoin's Coinbase Premium Index hit a 39-day high. B

Bitcoin's Coinbase Premium Hits 39-Day High as Price Reclaims $63K

Interest in Bitcoin from U.S. investors surged after the Federal Reserve (Fed) confirmed it would cut interest rates.

U.S. Bitcoin buyer interest hit a 39-day high after the Fed confirmed that interest rates would be cut, according to recent data.

"U.S. Bitcoin demand increased strongly today as the Fed signaled that the rate-cut cycle will begin," CryptoQuant analyst Julio Moreno wrote on X on August 24.

On August 23, Bitcoin's Coinbase Premium Index climbed to its highest level in 39 days. Source: CryptoQuant/Julio Moreno

Moreno's claim is based on the Coinbase Premium Index, which measures the price gap between Bitcoin on Coinbase Pro and Binance, and is used as an indicator of U.S. investor demand relative to the rest of the world.

The index reached its highest level since July 15, hitting 0.0114.

While positive readings signal buying pressure, negative readings can indicate a sell-off is underway. Just before the crypto "Black Monday" on August 5 — when Bitcoin's price dropped below $50,000 — the Coinbase Premium had fallen below -0.10.

The demand surge followed Fed Chair Jerome Powell reassuring the public that rate cuts were likely, though he stopped short of specifying a timeline.

"The time has come for policy to adjust," he said in a speech at the annual Jackson Hole symposium.

At the time of writing, Bitcoin was trading at $63,978, up 5.46% since August 22, according to CoinMarketCap data.

Bitcoin surged back toward $65,000 but was unable to hold that level. Source: CoinMarketCap

Bitcoin's price rallied close to $65,000, reaching $64,769 — a level it had not touched since August 2.

Cointelegraph recently reported that Powell's closely watched event, where markets were looking for signals of policy easing, saw Powell lean dovish, signaling that "a easing of policy restraint is appropriate," while stopping short of committing to a specific timeline for cuts.

Related: Bitcoin's price rally has 350 more days to run: Bybit

Just hours before the Fed announcement and Bitcoin's price breakout, Bitcoin had been hovering around $60,000, with concerns about selling pressure from miners as the cost to mine one Bitcoin remained at $72,224.

Crypto analyst Will Clemente noted that "there are 7 days left in the month, but it's undeniable that the market has treated BTC below $60K as value throughout the past 6 months," in an August 23 post.