Bitcoin jumps 5% to $81,000, crypto market cap rises $112 billion after Fed signal

Fed governor’s remarks trigger market move

Federal Reserve Governor Christopher Waller indicated that he would consider maintaining interest rates at current levels during the Fed’s September meeting, provided that the decline in US inflation persists. Waller delivered these comments at a Reuters-hosted event, providing reassurance to investors who were previously concerned about the potential for another rate hike.

Waller’s public remarks led to an immediate retreat in US Treasury yields and a weakening of the US dollar against other major currencies. Lower yields reduce the relative attractiveness of safe, interest-earning investments, prompting some investors to seek higher returns in riskier assets such as cryptocurrencies.

The dollar’s decline made Bitcoin more affordable for international buyers, further boosting global demand. Analysts noted that the positive sentiment spilled over into traditional equities, with US stocks and companies tied to the digital asset sector advancing on the day.

Waller suggested he could support holding rates steady in September if inflation shows further cooling, easing fears of an imminent rate increase among investors.

Bitcoin leads market-wide recovery

Bitcoin’s price advanced 4.91% from its daily opening near $77,307 to reach approximately $81,100 during intraday trading. The cryptocurrency briefly touched $81,392 before experiencing minor selling pressure.

Market data showed the value of all cryptocurrencies increased 4.35% over the session to $2.7 trillion, with roughly $112.4 billion in new capital entering the market. Excluding stablecoins, the overall market capitalization rose by 5.05% to $2.42 trillion.

Bitcoin approached key resistance in the $82,000 to $82,500 range, a zone that has capped upward moves in previous sessions. Market analysts are watching this area closely as a potential trigger for further gains if surpassed.

Charts from leading analytics platforms reflected increased buying activity across the sector, with upward momentum building throughout the day. However, after such a sharp single-day advance, traders highlighted the possibility of some consolidation or profit-taking before the market attempts another decisive move higher.

Momentum has shifted firmly in favor of buyers across both Bitcoin and the wider crypto market, though a short-term pause may follow after these rapid gains.

Broader impact on risk assets

Price increases extended beyond digital assets, as equities tied to the cryptocurrency industry and broader US stock indices both registered gains. This pattern suggests that investor appetite for risk assets remains strong in the wake of dovish signals from the Federal Reserve.

As of 21:30 EDT, Bitcoin continued to trade above $81,000 and the overall market held on to most of its newly added value. Observers noted that the interplay between central bank policy expectations, bond yields, and digital asset prices remains a key driver for both short-term trading and longer-term investment flows.