Bitcoin rallied above $81,000 as shifting expectations for Federal Reserve policy gave risk assets a boost, with September rate-hike odds falling below 50%.
Fed Governor Christopher Waller said Thursday he would be inclined to hold interest rates steady at the September meeting if next week’s August CPI report shows further progress on inflation. He said energy prices and tariffs had not generated the level of inflationary pressure he previously feared.
CME FedWatch showed September hike odds dropping to 48% from nearly 70% one day earlier. The move coincided with declines in Treasury yields, with the 10-year yield falling to 4.75% and the two-year yield to 4.33%.
A weaker US dollar also supported crypto markets. Bitcoin rose more than 5%, while Strategy gained nearly 10%, Robinhood 13%, Coinbase 8% and Circle 12%.
The DXY index fell more than 0.5% below 99 as the Japanese yen rallied.
