Bitcoin Soars Past $81,000 as Fed Rate Expectations Shift
Bitcoin's price rebounded sharply on Friday, reaching around $81,000 during Asian trading hours. This marked a four percent increase over the past 24 hours and a significant recovery from its recent dip below $78,000.
The move was attributed to a repricing of U.S. monetary policy, with Fed Governor Christopher Waller indicating that he would support holding rates steady if price pressures continue to ease. This shift in expectations led to a decline in the probability of a rate increase this month, as priced in by the CME FedWatch tool.
Additionally, bond yields eased, and buyers returned to risk assets, including crypto, after gold and global equity indices also advanced. The yen strengthened by about two percent, but bitcoin absorbed the move without giving back its gains.