Bitcoin Soars to Four-Month High as Fed Hike Fears Ease
Bitcoin's price surged to its highest level since May, reaching $82,200 after a 6.8% increase in just 24 hours.
The rally was triggered by Federal Reserve Governor Christopher Waller's dovish comments, which eased expectations of a September rate hike.
Waller stated that he would support holding the Fed's policy rate steady at the September meeting if incoming inflation data continued to cool. Swaps pricing immediately shifted, with markets moving to roughly even odds of a September hike, down from about 70% earlier in the week.
The total crypto market capitalization rose more than 3.7% to $2.814 trillion, while Ethereum (ETH) rose 4.3%, XRP gained 5.8%, and Zcash (ZEC) led major-cap gainers with a 16.2% jump.
The move coincided with broad gains across risk assets, including the S&P 500, Nasdaq Composite, and Dow Jones Industrial Average. The US dollar fell to its lowest level since May, and the two-year Treasury yield dropped three basis points to 4.34%.