Bitcoin surges past $81,000 as Fed rate hike expectations recede

Bitcoin advanced significantly on Wednesday, surpassing the $81,000 mark and gaining approximately 4.7% during the trading day. The cryptocurrency traded at roughly $78,000 earlier but climbed to operate above $81,000 by early afternoon, reversing an intraday low of approximately $77,000 recorded in the morning. Investors reacted to a reduction in betting on a further increase in US interest rates this month. A primary catalyst was the statement by Federal Reserve Director Christopher Waller, who indicated willingness to maintain the benchmark rate between 3.50% and 3.75% annually if recent inflation signals hold. Waller added that he would consider raising the rate should inflation remain high. This approach contrasted with the harder stance taken by Fed President Kevin Warsh at Jackson Hole last week, which had pushed market pricing toward a quarter-point hike. Consequently, the likelihood of the September 15-16 FOMC meeting including such an increase fell from roughly two-thirds to just over 50% following Waller's comments.