Fed Official's Comments Spark Bitcoin Price Surge Past $81,000
The Bitcoin price surged past $81,000 after Federal Reserve Board member Christopher Waller indicated that he might support keeping interest rates unchanged in September.
Waller stated that barring any unexpected increases in upcoming inflation data, the Fed favors maintaining current interest rate levels at its September 15-16 meeting. He acknowledged that inflation is still 'significantly above' the Fed's 2 percent target, but noted that recent data indicates a strengthening disinflation process.
The likelihood of a Fed interest rate hike has sharply dropped following Waller's remarks, with CME FedWatch data showing a probability of 48.4% for a September rate hike and 51.6% for rates remaining unchanged. The upcoming August consumer inflation figures will be crucial in determining the Fed's decision.
The decline in expectations of interest rate hikes has increased demand for risky assets, with Bitcoin rising by approximately 4.3% to $81,300. Other cryptocurrencies such as Ethereum, BNB, Solana, and XRP have also seen significant gains.