Waller's Comments Spark Bitcoin Rally as Rate Hike Odds Plummet

Last week's Bitcoin price drop to $77k after Federal Reserve Chair Kevin Warsh's hawkish speech at the Jackson Hole event was short-lived. The Fed wasn't done fighting inflation yet, which raised the odds of a rate hike to 57%. However, on Thursday, September 3rd, the situation changed with comments from Fed Governor Christopher Waller.

Waller indicated that he would support keeping interest rates unchanged during the September meeting, which sent Bitcoin prices up by 5% in a single day. The same day saw $730.8 million net flows into spot BTC ETFs, highlighting strong demand for the asset. This price move also led to an uptick across the crypto market.

The odds of a rate hike were slashed from 57% to closer to 50%, according to the CME FedWatch Tool. It's now a coin toss whether interest rates remain unchanged or face a hike, with any event between now and the announcement likely to move markets further.