Bitcoin Price Impact Following Powell’s Comments
Following Federal Reserve Chairman Jerome Powell’s speech at the Jackson Hole symposium, there has been a noticeable rise in Bitcoin demand in the United States. Experts, such as Julio Moreno from CryptoQuant, have observed an uptick in interest in the cryptocurrency, largely linked to the Fed’s discussion of potential interest rate cuts.
Lower interest rates typically make traditional financial assets less attractive, thus boosting interest in riskier investments like Bitcoin. Moreno highlighted that the premium of Bitcoin on Coinbase, the leading US-based crypto exchange, has hit its highest level since mid-July. This premium showcases the disparity in Bitcoin’s value on Coinbase compared to other global exchanges.
The growing demand for Bitcoin among US investors, reflected in the rising premium on Coinbase, signals a positive trend for the cryptocurrency’s price. However, this heightened demand, combined with possible interest rate cuts, could increase market volatility. This surge in US demand comes at a pivotal moment, following a period of sluggish growth in Bitcoin demand that has hampered its price momentum.
CryptoQuant underscored the necessity of continuous demand growth for Bitcoin to attain new price highs. If the ongoing trend persists and demand broadens to other markets, investors may witness Bitcoin reclaiming its peak levels. Currently, Bitcoin is trading around $64,000, boasting a noteworthy 5% increase in the past day and a 7.5% rise over the week.
In summary, the recent surge in US Bitcoin demand post-Powell’s statements holds the potential to strongly influence the cryptocurrency’s price trajectory. With sustained expansion and heightened investor interest, Bitcoin could be on track to revisit its previous record highs.
