Following Jerome Powell’s speech, Bitcoin price suddenly surged and reached a level unseen for a long time early in the day. Amidst all this, notable comments from key market figures were also observed. So, what exactly is happening in the market right now? Let’s take a look together.
Bitcoin Comments
According to recent data from the market, the interest of Bitcoin buyers in the US reached a 39-day high after Federal Reserve officials clearly stated that interest rates would decrease, significantly impacting the price.
Julio Moreno from CryptoQuant said in his post on X on August 24:
With the Fed signaling the start of a lower interest rate cycle, Bitcoin demand in the US rose today.
Moreno’s view was based on the Coinbase Premium Index, which highlights the difference in Bitcoin prices between Coinbase Pro and Binance, reflecting the demand difference between US investors and those outside the US.
The indicator reached its highest level since July 15, with a value of 0.0114. A positive outlook indicates buying pressure, while a negative outlook suggests that a sale might already be happening. Just before Bitcoin’s price plummeted below $50,000 on August 5, known as “Crypto Black Monday,” the Coinbase Premium indicator had dropped below -0.10.
The increase in demand occurred after Fed Chairman Jerome Powell suggested that interest rate cuts were likely, although no specific timeline was provided. In his speech at the annual Jackson Hole symposium, Powell commented that it was time to adjust the policy.
Current Bitcoin Status
According to data provided by CoinMarketCap, as of the time of writing, Bitcoin was trading at $64,281 after a 5.46% increase since August 23. During the night and into the morning, the price reached $64,769, a level last seen on August 2, and then visited $65,000 in the futures market.
Before the Fed’s announcement of the minutes, Bitcoin was trading around $60,000 just hours before the price surge, with concerns about potential selling pressure from miners due to the mining cost remaining at $72,224.
Crypto analyst Will Clemente said on August 23:
There are still 7 days left in the month, but it is undeniable that the market has valued BTC below $60,000 for 6 months.
