Bitcoin Reclaims $82K Amid Dovish Remarks, Fed Hold Now Seen as Likely

The price of Bitcoin has reclaimed its level above $82K after Governor Waller's dovish remarks, which lowered hike odds to about 50%. The Federal Reserve's decision on September 16 is now seen as a hold, according to six key reasons laid out by experts.

One reason is that hawkish words from Fed officials do not necessarily translate to actual hikes. For instance, Warsh said the Fed has 'more work to do' but did not commit to raising rates. He also favors trimmed-mean PCE, a newer statistical gauge that shows inflation is closer to the 2% target.

The White House cannot afford a hike before the midterm elections in November, and the stock market is the administration's most visible economic scorecard. A hike would be seen as a negative for equities, which could harm the administration's chances of retaining power.

This inflation is supply-side driven, mainly by energy and tariff pass-through, rather than demand overheating. As long as oil prices remain stable, inflation data will likely stay manageable.