Bitcoin Surges Past $81,000 on Easing Interest-Rate Expectations
Bitcoin surged past $81,000 on Friday, driven by increased inflows into US spot ETFs and a return to buying by market strategists. The cryptocurrency rose 3.93% in the last 24 hours to trade at $81,017.
Ethereum followed suit, gaining 4.51% to reach $2,515. Among major altcoins, BNB, XRP, Solana, Tron, Hyperliquid, Dogecoin, and Cardano saw gains of up to 6.91%.
According to Balaji Srihari, VP - Business at CoinSwitch, the broader trend remains positive with BTC trading above its key moving averages. However, momentum is starting to look stretched, as daily RSI has moved above 73, while the hourly RSI is above 80, signaling overbought conditions.
Global crypto market capitalization rose 3.41% to $2.71 trillion, according to CoinMarketCap. Vikram Subburaj, CEO of Giottus, noted that the rebound from $77,000 on September 3 shows how quickly sentiment can turn when interest-rate expectations change.
Prateek Gupta, Head of Business at Mudrex, attributed Bitcoin's rally to Fed Governor Christopher Waller's signal for holding rates at the upcoming FOMC meeting if inflation continues to ease. This shift pushed September rate-hike expectations down 12 percentage points to 54.6% and weakened the dollar.