Bitcoin Rebounds to $81,000 as Fed Comments Ease Rate Hike Fears

The Bitcoin price rebounded to the $81,000 range after Federal Reserve Governor Waller's remarks on interest rate hikes in the US. The comments eased concerns about additional interest rate increases, leading to a 5% surge in Bitcoin prices from the $77,000 range.

This short-term rebound is not solely due to changes in market sentiment but also influenced by large-scale short covering and the acceleration of cross-entry between crypto assets and banks. With this recovery, Coinbase surged over 10%, while Strategy jumped more than 17%.

The key focus now shifts to whether this rebound will lead to a full-fledged trend reversal or remains a temporary rally driven by short covering. The break above the $82,793 level is crucial for Bitcoin's potential growth, and if it fails to hold, there's a risk of retesting the $77,000-$79,000 range.

The US employment statistics for August are also being closely watched, as significant non-farm payrolls could strengthen rate cut speculation, potentially causing Bitcoin prices to increase further. On the other hand, if the figures fall short of expectations, rate hike expectations may recede, leading to a decline in Bitcoin prices.