Crypto Market Ends Week on Upswing as Fed Comments Boost Sentiment
The cryptocurrency market ended its first week of September on an uptrend after significant volatility at the start of the week. According to Fixygen, Bitcoin has returned above the $81,000 mark, Ethereum approached $2,500, and the total market capitalization rose to approximately $2.81 trillion.
The main driver behind this movement was a shift in expectations regarding the U.S. Federal Reserve's future monetary policy, specifically the comments made by Federal Reserve Board member Christopher Waller on September 3. He stated that he would support keeping interest rates at their current level if incoming data confirmed a further slowdown in inflation.
As a result of these statements, pressure on the dollar and U.S. Treasury yields eased, which supported risk assets, particularly cryptocurrencies. Bitcoin, for instance, rose to approximately $82,200, a high not seen in more than three months.