Bitcoin Surges Past $80,000 on Dovish Fed Signals

Bitcoin broke through the $80,000 level on Thursday for the first time since mid-May, sparking a broad rally in U.S. and Asian crypto-linked equities.

The surge was driven by dovish signals from Federal Reserve Governor Christopher Waller, who stated that recent data shows 'some signs' of a disinflationary process taking hold. He indicated that if upcoming indicators confirm this trend is continuing, he would lean toward supporting a rate hold at the September monetary policy meeting.

This stance contrasts with Federal Reserve Chair Kevin Warsh's previously expressed concerns about inflation, prompting markets to rapidly recalibrate expectations for a September rate hike. The market-implied probability of a quarter-point rate hike dropped sharply from 63.2% on Wednesday to 50.4%, according to the CME FedWatch tool.

Crypto-linked equities delivered standout performances during the rally, with online trading platform Robinhood Markets (HOOD) surging as much as 15% intraday and stablecoin issuer Circle Internet Group (CRCL) rising over 13%. Spot Bitcoin ETFs recorded approximately $3.5 billion in net inflows in August, providing fundamental support for the cryptocurrency's price.