Bitcoin Surges Past $81,000 as Iran Hostilities Ease

The Bitcoin price rose to $81,491 on September 3 after hostilities between the U.S. and Iran paused.

This marked a 5.5% increase from the previous day's close and took the price back above the $80,000 threshold it had lost on August 28.

The rally was largely driven by short covering, with around $164 million of short positions being liquidated in four hours against just $7.3 million of longs.

While the odds of a Fed rate hike this month fell from 67% to 50.5%, the market is still pricing in a higher chance of a hike than it was at the start of the week.