Waller's Dovish Comments Spark Bitcoin Rally, Rate Hike Odds Plunge
Bitcoin's price surged by 5% on Thursday, September 3rd, following comments from Federal Reserve Governor Christopher Waller that he would be inclined to support keeping interest rates unchanged during the upcoming meeting.
This rally in Bitcoin led to an uptick across the crypto market and reduced the odds of a rate hike from 57% to closer to 50%, according to the CME FedWatch Tool.
The same day saw $730.8 million net flows into spot BTC ETFs, highlighting strong demand for the cryptocurrency.
However, it's worth noting that even if the Fed decides to hold interest rates steady, it could have a bearish impact on crypto, as the swift tightening cycle in 2022 led to a significant decline in Bitcoin's price.
The outcome of the Fed's decision is now seen as a coin toss, with any event from now until the announcement that gives some certainty to an outcome likely to move markets significantly.