Bitcoin Climbs 6.8% to Four-Month High as Waller's Remarks Ease Fed Rate-Hike Concerns
Key Takeaways
- •Bitcoin gained roughly 6.8% in 24 hours to $82,240, its highest level since May, after Fed Governor Christopher Waller's comments reduced expectations of a September rate hike.
- •Swaps markets shifted to roughly even odds of a September rate hike, down from about 70% earlier in the week, following Waller's September 3 remarks.
- •US-listed spot Bitcoin ETFs attracted about $730 million in net inflows on September 3, their largest single-day total since January, while an estimated $456 million in crypto futures shorts were liquidated.
- •Altcoins rallied broadly, with Ethereum up 4.3%, XRP up 5.8%, and Zcash up 16.2%, and the total crypto market capitalization rose over 3.7% to $2.814 trillion.
- •The US August jobs report, due Friday at 8:30 a.m. ET, is the final major data release before the Fed's September meeting and could act as a key market catalyst.
Bitcoin climbed to $82,240 early Friday European time, gaining roughly 6.8% over 24 hours to reach its highest level since May. The rally, which began late Thursday, was triggered by remarks from Federal Reserve Governor Christopher Waller that eased expectations of a September rate hike. The move underscores how shifting Federal Reserve rate expectations have become a dominant driver of crypto price action, tying Bitcoin's performance closely to macroeconomic data releases. The total cryptocurrency market capitalization rose more than 3.7% overnight to $2.814 trillion.
Markets will next turn their attention to the US August jobs report, due Friday, September 4, at 8:30 a.m. ET. As the final major economic data point before the Federal Reserve's September meeting, the report could serve as a key market catalyst later in the day for both crypto and traditional markets.
Waller's Rate Comments Trigger Broad Crypto Rally
On September 3, Waller said he would support holding the Fed's policy rate steady at the September meeting if incoming inflation data continued to cool. Swaps pricing shifted immediately, with markets moving to roughly even odds of a September hike, down from about 70% earlier in the week. Lower rate expectations tend to support risk assets such as Bitcoin, in part because they reduce the opportunity cost of holding non-yielding assets.
Altcoins posted broad gains alongside Bitcoin. Ethereum (ETH) rose 4.3%, XRP gained 5.8%, and Zcash (ZEC) led major-cap gainers with a 16.2% jump.
US-listed spot Bitcoin ETFs recorded roughly $730 million in net inflows on September 3, their strongest single-day haul since January, while an estimated $456 million in crypto futures short positions were liquidated over the same period. Strong ETF inflows alongside heavy short liquidations indicate that institutional positioning and leveraged traders amplified the price move.
Markets Rally on Rate-Cut Hopes
The crypto move coincided with broad gains across risk assets. The S&P 500 rose 1.06% to 7,747.71, the Nasdaq Composite gained 1.4% to 26,584.06, and the Dow Jones Industrial Average added 624.16 points, or 1.18%, to close at 53,686.11.
The US dollar fell to its lowest level since May, and the two-year Treasury yield dropped three basis points to 4.34%. A weaker dollar typically makes dollar-priced assets such as Bitcoin relatively cheaper for international investors.
Safe-haven assets also moved higher: gold futures reached $4,526.20, up 2.53%, while Brent crude rose 1.07% to $96.24 a barrel amid heightened Middle East tensions following US strikes on Iran and renewed Israeli threats.
US Vice President JD Vance also called for rate cuts on Thursday, a position at odds with recent signals from new Fed Chair Kevin Warsh favoring tighter policy. The divergence highlights the policy uncertainty that markets will be watching as the Fed's September meeting approaches.
