Bitcoin Soars Above $80,000 as Fed Governor Backs Rate Hold

Fed Governor Christopher Waller said he's willing to support holding interest rates steady at their current level, which sent Bitcoin soaring above $80,000 and Ethereum and XRP rallying.

The comments from Waller came ahead of the Federal Reserve's September meeting, where a rate hike was expected by many market observers. However, with inflation cooling down, Waller believes it may not be necessary to raise rates at this time.

Bitcoin has been particularly sensitive to interest rate changes, and a rate hold would remove one major headwind for the cryptocurrency. As a result, BTC surged 5% to $80,600 on Thursday, pushing into the resistance band that has capped price since May.

Ethereum and XRP also saw significant gains, with prices rising by 4% and 8%, respectively. The rally in XRP was particularly notable, as it broke decisively out of a descending triangle that had compressed its price for two weeks after August's spike to $1.70.