Bitcoin Rallies Above $80K as Rate Hike Expectations Ease

Bitcoin is on a roll as it rises above $80,000 after a 5% rally in the previous session. This price surge comes as risk sentiment improves following comments from U.S. Federal Governor Christopher Waller that hinted at lowering September rate hike expectations.

The market has lowered the odds of a September rate hike from almost 70% earlier this week to 50% at the time of writing, with attention focused on next week's CPI data and today's non-farm payroll report. A continued progress towards the 2% inflation goal could influence the Fed's direction.

The non-farm payroll report is crucial, with expectations for 56,000 jobs to be added in August after a loss of 23,000 jobs in July. Weaker-than-expected NFP data could see the market continue to rein in rate hike expectations, pulling Treasury yields and the U.S. dollar lower while supporting Bitcoin.

Bitcoin's technical analysis suggests that it has entered consolidation mode around the $80K level after breaking above the 50 EMA and rallying sharply from $65K to $81K. Buyers will need to break above the key $81K-$82.5K resistance zone to create a higher high and turn attention towards $90K and the psychological $100K level.