Bitcoin Surges Above $81,000 as Fed Hints at Rate Pause

Bitcoin's price surged to above $81,000 after a Fed Board member indicated he might support keeping interest rates unchanged in September. Christopher Waller stated that, barring any unexpected increases in upcoming inflation data, the Fed favors maintaining current interest rate levels at its meeting on September 15-16.

Waller acknowledged that inflation remains 'significantly above' the Fed's 2 percent target but said recent data indicates a strengthening disinflation process. He emphasized that a single meeting rate hike of 25 basis points would not quickly bring inflation down to the target, saying 'Let's give disinflation a chance. We can wait one meeting.'

The probability of a Fed interest rate hike in September dropped sharply after Waller's remarks, falling from 63.2% to 48.4%, according to CME FedWatch data.