Waller's Rate Hike Comments Spark $81k Bitcoin Surge

Bitcoin surged above $81,000 after Fed Governor Christopher Waller expressed support for keeping interest rates steady. This reduced the likelihood of a rate hike in September.

In an interview, Waller stated that he would be inclined to back keeping the rate stable if inflation data continued to improve.

The comments sparked a sharp rally, with traders revaluing odds of a hike from 63.2% to 50.4% within an hour using the CME FedWatch tool.

As a result, more than $415 million in short positions were closed in crypto derivatives in a single day.

The yield on the 10-year Treasury fell dramatically, dropping to 4.73%, while Bitcoin short sellers incurred significant losses, with liquidations exceeding $500 million within a day.