Bitcoin Defends $80,000 as Bulls Eye New Heights

Bitcoin has held above $80,000 after rising more than 4% in the past 24 hours to around $81,000. The cryptocurrency's price movement comes as Federal Reserve Governor Christopher Waller supported keeping interest rates unchanged at the September Federal Open Market Committee meeting.

Waller's comments led to a change in rate expectations, with the market-implied probability of a September rate increase falling from over 63% to roughly 50%. This eased concerns that tighter monetary policy could weigh on Bitcoin and other risk assets.

US Treasury yields moved lower, with the 10-year yield falling towards 4.75% and the two-year yield approaching 4.33%. The US dollar index also dropped more than 0.5% in response to the shift in expectations.

Leveraged traders amplified Bitcoin's initial price jump, contributing to total crypto liquidations above $500 million over 24 hours, including roughly $416 million in short positions. As a result, forced closures of short positions helped accelerate the move towards $81,000 and briefly above $82,000.