Bitcoin Surges Past $80K on Fed Rate Hike

The Federal Reserve raised interest rates for the first time since 2023, hiking the federal funds rate by 25 basis points to a target range of 3.75% to 4.00%. This decision comes amidst a surge in Bitcoin's price, which has pushed past $80K. The unexpected market movement has led to a massive liquidation of shorts.

The US Consumer Price Index (CPI) recorded a 3.4% year-over-year increase in August 2026, while core inflation rose 0.3% month-over-month. This data met expectations and contributed to the rebound in Bitcoin's price towards $80K. The CLARITY Act setback in the Senate has also had an impact on crypto prices.

Samson Mow, CEO of JAN3, stated that institutional and retail investors are using Bitcoin as a hedge against banking instability. This trend is driving up demand for BTC, which is currently trading at around $80K after surpassing this price threshold. The mysterious trader who moved $912 million in Bitcoin ahead of the Jackson Hole speech has also been closely watched by market observers.