Bitcoin Blasts Past $81k as Rate Hike Fears Cool Down

Bitcoin's price surged to over $81,000 on Friday as fears of an imminent US interest rate hike began to cool down. The world's largest cryptocurrency rose by 4.2% to $80,943.6 at 02:22 ET (06:22 GMT), its highest level in nearly four months.

The sharp drop in US Treasury yields following comments from Federal Reserve Governor Christopher Waller helped ease concerns that interest rate hikes were imminent. Waller stated he is leaning towards keeping rates steady when the Fed meets later this month, especially if upcoming inflation data points to a moderation in price pressures.

Waller's comments led to a significant reduction in bets on a September interest rate hike, with CME Fedwatch indicating a 50.4% chance, down from over 60% earlier in the week. The prospect of steady rates bodes well for Bitcoin, given its sensitivity to shifts in yields.

Bitcoin's rally was also fueled by encouraging comments from Securities and Exchange Commission Chair Paul Atkins on U.S. regulation. Atkins stated he expects the Senate to vote on the Clarity Act on September 15, calling on policymakers to pass the act and send it to President Donald Trump for approval by the month-end.