Bitcoin Surges Past $81K as Fed Rate Hike Expectations Plummet

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

Waller noted that inflation is still 'significantly above' the Fed's 2 percent target, but recent data indicates a strengthening disinflation process. He emphasized that the impact of tariffs on prices remains limited and that rising energy prices have not created significant inflationary pressure in other areas of the economy.

The likelihood of a Fed interest rate hike has sharply dropped following Waller's remarks. The probability of the Fed raising interest rates in September fell from 63.2% to 48.4%, according to CME FedWatch data. Meanwhile, the probability of rates remaining in the current 3.50-3.75% range rose to 51.6%.

The decline in expectations of interest rate hikes has increased demand for risky assets, with Bitcoin rising by approximately 4.3% in the last 24 hours to reach $81,300. The cryptocurrency's market capitalization has reached nearly $1.62 trillion, while its 24-hour trading volume has approached $33 billion.