On August 24, Bitcoin’s price experienced a significant upswing following comments by Federal Reserve Chair Jerome Powell at the Jackson Hole Economic Symposium, where he indicated a potential shift in interest rate policy.
At the time of reporting, Bitcoin had surged by 5.12%, reaching a price of $64,212.91 per coin, with a peak of $64,955 earlier in the day—marking its highest level since August 2.
Increased US Demand for Bitcoin
The bullish momentum was largely driven by heightened interest from US-based investors. Julio Moreno, Head of Research at CryptoQuant, noted on social media that the Coinbase Premium Index—which tracks the price difference for Bitcoin between Coinbase and Binance—had reached its highest point in 39 days.
A rising premium typically signals increased buying pressure among US investors, while a negative value may suggest growing sell-side activity. For instance, before the sharp market decline on August 5—often referred to as “Crypto Black Monday”—the index dropped below -0.10, foreshadowing Bitcoin’s fall below $50,000.
This surge in demand aligns with Powell’s remarks about adjusting monetary policy, which many interpreted as a precursor to rate cuts. Earlier in the day, Bitcoin had been trading around $60,000, a level some analysts considered undervalued.
Market Impact and Short Squeeze
The sudden price jump caught many traders off guard, particularly those holding short positions. Data from Coinglass shows that nearly 63,000 traders were liquidated in the past 24 hours, resulting in total liquidations of $175 million. Of this, short-position liquidations accounted for $134 million—the highest since early August.
This market movement underscores the volatility of cryptocurrency markets and how macroeconomic signals can trigger rapid price changes.
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Divergence Between Bitcoin and Ethereum ETFs
While Bitcoin rallied, the newly launched Ethereum ETFs in the US saw a different trend. Despite high initial expectations, these funds have experienced seven consecutive days of outflows since August 15—the longest streak since their debut in late July.
In contrast, Bitcoin ETFs have continued to attract consistent inflows. On Friday alone, spot Bitcoin ETFs recorded a net inflow of $251 million, the highest since mid-July. Major funds like BlackRock’s IBIT, Fidelity’s FBTC, and Grayscale’s GBTC all saw increased investor interest.
Noelle Acheson, author of the “CryptoIs Macro Now” newsletter, noted: “Bitcoin often serves as the entry point for traditional investors entering the crypto space. While Ethereum may eventually catch up as diversification becomes more relevant, Bitcoin continues to lead in performance.”
Stephane Ouellette, CEO of FRNT Financial, added that ETF investors may have been hedging risk ahead of the Jackson Hole event, contributing to the divergence in fund flows.
Frequently Asked Questions
What caused Bitcoin’s recent price surge?
Bitcoin’s price increase was largely triggered by Federal Reserve Chair Jerome Powell’s comments suggesting future interest rate adjustments, which boosted investor confidence and demand.
What is the Coinbase Premium Index?
It is an indicator that measures the price difference for Bitcoin between Coinbase and Binance. A positive value often indicates strong buying interest from US investors.
Why are Bitcoin ETFs outperforming Ethereum ETFs?
Bitcoin is often seen as the default crypto asset for institutional investors. While Ethereum offers diversification, Bitcoin currently attracts more consistent ETF inflows due to its established market presence.
How did short sellers fare during the rally?
Many short sellers faced significant losses, with $134 million in short-position liquidations occurring within 24 hours—the highest level seen since early August.
Will Ethereum ETFs eventually gain traction?
It’s possible. As the crypto market matures and investors seek diversification, Ethereum and other altcoins may attract more interest. For now, Bitcoin remains the dominant choice.
Where can I monitor real-time Bitcoin metrics?
You can use various cryptocurrency data platforms to track prices, trading volumes, and market sentiment 👉 Explore live crypto analytics tools.
Note: All data and commentary are based on publicly available sources and should not be considered financial advice. Always conduct your own research before making investment decisions.