These Fed Rate Comments Spark Powerful Bitcoin, Crypto Rally

Bitcoin (BTC) rose 5% to $81,000 as the US dollar weakened, with the USD/JPY pair dropping to 155.4 amid suspected Bank of Japan intervention. The US Dollar Index (DXY) fell to 99, historically benefiting Bitcoin. Strategy (MSTR) shares gained 8.6%, though its preferred stock (STRC) remains below par. Analysts debate the impact of yen intervention and potential BOJ rate hikes.

Bitcoin (BTC) rose 5.5% to $81,491 on Thursday after U.S.-Iran tensions eased, pushing it above $80,000. The crypto market gained 4.7%, with Ethereum and Solana also up. The rally was driven by short liquidations and a drop in Fed rate hike odds. However, the rally's sustainability is uncertain, as similar gains in August were short-lived and bond yields remain high.

Bitcoin (BTC) rose 5.5% to $81,491.82, Ethereum (ETH) gained 5.2% to $2,511.01, and Solana (SOL) increased 5.9% to $105.30 on Sept. 3. The total crypto market cap grew 4.7% to $2.82 trillion. The rally followed signals from Fed Governor Christopher Waller that rates may remain unchanged, reducing concerns about rising bond yields.

The CFTC urged a judge to dismiss CME's lawsuit challenging its approval of Kalshi's bitcoin perpetual futures, arguing CME lacks standing and that perpetual futures are futures, not swaps. The CFTC claims CME has not shown financial harm and could offer similar products itself. The dispute may extend into the next administration if the judge only rules on standing.

Bitcoin rose 4% to surpass US$80,000 on Thursday, supported by stock gains, falling Treasury yields, and a weaker dollar. Fed Governor Christopher Waller's remarks on potential rate pauses contributed to the rally. However, U.S. investor demand remains inconsistent, with spot bitcoin ETF inflows fluctuating. Glassnode notes subdued trading activity compared to past bull runs, and long-term holders may sell near US$83,000-US$86,000, potentially capping further gains.

U.S. stocks rallied after Fed Governor Christopher Waller suggested a potential September rate hold. Bitcoin surged 4.6% to $80,900. Tesla, Meta, and Microsoft led gains, while Broadcom and Tyson Foods declined. Snowflake rose 21.9% on strong earnings and raised guidance. The S&P 500 and Nasdaq 100 each gained over 0.9%.