Bitcoin Smashes Through $80,000 on Fed Governor's Hawkish Remarks

Bitcoin's price surged through the $80,000 mark on Thursday, after Federal Reserve Governor Christopher Waller indicated he would support keeping interest rates unchanged in September. This move was a stark contrast to market expectations of a rate hike, which caused a ripple effect across various assets.

The implied odds of a September hike dropped by 12 percentage points, from around 66% to 54.6%, according to the CME FedWatch tool. As a result, the two-year Treasury yield fell by seven basis points to 4.30%, while the dollar lost ground against its G10 peers.

The reaction was exactly what Bitcoin needed, with lower yields and a weaker dollar creating an ideal environment for the cryptocurrency. Its price jumped by $2,400, or 3.07%, from the previous close of $77,302 to trade at $80,301.