Bitcoin Reclaims $80,000 as Fed Rate Hike Odds Collapse

Bitcoin has broken through the $80,000 barrier for the second time this week, trading at $80,301 after reaching an intraday high of $80,477. The move was triggered by Federal Reserve Governor Christopher Waller's comments on Thursday that he is inclined to support leaving interest rates unchanged at the September 15-16 meeting, provided August inflation data confirms that price pressures are still cooling.

The implied odds of a September rate hike collapsed to around 54.6%, down roughly 12 percentage points from earlier in the day, according to CME FedWatch. This has led to lower yields and a weaker dollar, creating a favorable environment for Bitcoin.

However, some analysts are cautioning that the RSI (14) has spiked to 72.13, indicating an overbought condition. Historically, this can lead to a sideways correction or a sharp pullback into the breakout zone.