Bitcoin Soars Above $80,000 as Rate Expectations Shift

Bitcoin's price has surged more than 4% over the past 24 hours to around $81,000, maintaining its hold above the $80,000 level after briefly breaking $82,000. The Federal Reserve Governor Christopher Waller's recent comments about keeping interest rates unchanged have driven this move.

Rate expectations changed rapidly following his remarks, with the market-implied probability of a September rate increase falling to roughly 50% from over 63% a day earlier.

The lower rate expectations have eased concerns that tighter monetary policy could weigh on Bitcoin and other risk assets. The US Treasury yields moved lower as traders adjusted their expectations, while the US dollar index dropped more than 0.5%. US equities also joined in, with the Dow Jones Industrial Average gaining 1.18%, the S&P 500 rising 1.06%, and the Nasdaq Composite climbing 1.40%.

Leveraged traders amplified Bitcoin's initial price jump, with total crypto liquidations exceeding $500 million over 24 hours. CoinGlass figures put approximately $416 million in short positions among those liquidated, with over 119,000 traders affected.