Bitcoin Rises Above $81,000 as Rate Hike Expectations Ease

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Bitcoin (COIN:BTCUSD) rose sharply on Friday, extending its recent gains as expectations for a near-term U.S. interest rate increase declined and investors assessed comments on cryptocurrency regulation from U.S. officials.

Bitcoin gained 4.3% to $81,069.6 by 05:28 ET (09:28 GMT), after briefly trading above $82,000 during the previous session, its highest level in almost four months.

Markets also received some relief from the absence of further military action between the U.S. and Iran.

Crypto-related equities advanced during Thursday’s session, with Strategy, the largest corporate holder of Bitcoin, gaining almost 18%.

Bitcoin Heads for Third Consecutive Weekly Gain

Bitcoin was on course for a weekly increase of 4.3%, which would mark its third consecutive week of gains.

The cryptocurrency’s advance on Thursday and Friday coincided with a decline in U.S. Treasury yields following comments from Federal Reserve Governor Christopher Waller regarding the outlook for interest rates.

Waller told Reuters that he was leaning towards keeping rates unchanged when the Federal Reserve meets later in September, particularly if upcoming inflation data indicate that price pressures are moderating.

Following the comments, expectations for a September rate increase declined. CME FedWatch indicated a 50.4% probability of a rate hike, compared with more than 60% earlier in the week.

Bitcoin has recently shown sensitivity to movements in bond yields, with an increase in yields having interrupted its rally in late August.

U.S. Crypto Regulation Remains in Focus

Cryptocurrency markets also assessed comments from Securities and Exchange Commission Chair Paul Atkins regarding the Clarity Act.

Atkins said he expects the Senate to vote on the legislation on September 15 and called on policymakers to pass the bill and send it to President Donald Trump for approval by the end of the month.

He also said the SEC was preparing its own cryptocurrency legislation that could operate alongside the Clarity Act.

The Clarity Act has faced delays in Congress amid disagreements over provisions concerning stablecoin yield payments and restrictions on cryptocurrency trading by policymakers.

Ethereum, XRP and Other Cryptocurrencies Advance

Broader cryptocurrency markets also moved higher on Friday and were heading towards a third consecutive week of gains.

Ethereum, the second-largest cryptocurrency, rose more than 5% to $2,522.53 and was up 4.3% for the week.

XRP gained 6.6% on Friday and 7% for the week, while BNB advanced 2.5% during the session and was up 5% on a weekly basis.

Solana increased 3.9%, while Cardano rose 8%. Among memecoins, Dogecoin gained 5.8% and $TRUMP advanced 8.1%.

Source: finance.yahoo.com