Bitcoin rose above $81,000 in Asia trade on Friday after easing concerns that the Federal Reserve will raise US interest rates again, reviving demand for cryptocurrencies and other risk-sensitive assets.The biggest cryptocurrency was trading at $80,982․96, up 4․58% in the past 24 hours, at the latest snapshot․
The repricing of U․S.interest-rate expectations was fast, with market pricing assigning a 50% likelihood to a Federal Reserve interest rate hike in September, compared with above 63% earlier in the week.CME FedWatch, which estimates interest rate change probabilities based on prices posted on 30-Day Fed Funds futures contracts, is closely followed by investors and market commentators as a gauge of the market’s expectations․
Comments from Fed Governor Christopher Waller that he would back a pause in rate rises if price pressures continued to ease also boosted the view that the Fed would halt its tightening cycle. The shift in expectations helped Treasuries and gold extend gains made in New York trade, while riskier assets regained favor․
ZEC▲$465.18 saw the largest percentage rise, gaining 16․33% to a price of $955․12 within 24 hours. This was followed by HYPE▲$70.78 — the token for Hyperliquid — which rose 4․95% to $86․31, and XRP▲$1.13, which rose 6․36% to $1․44․
Other major tokens also gained ground, with Ethereum rising 4․88% to $2,511․58, BNB▲$572.56 gaining 4․57% to $724․08, and Dogecoin increasing 5․28% to $0․08716.Solana also gained, rising 3․32% to $103․86, and TRON rising 0․87% to $0․3288.The rally was broad-based outside of Bitcoin, though not each large-cap asset performed likewise․
U․S.spot Bitcoin exchange-traded funds saw one-time net inflows totaling about $277 million on Thursday, despite the irregular inflow pattern over the last four trading days, leaving market participants still waiting to see if institutional interest in the asset class has strengthened․
The upbeat tone fed into global equity markets. An MSCI measure of Asia Pacific stocks rose nearly 1%. The All Country World Index increased for a third day. The dollar bounced from its lowest point since May while a measure of Asian currencies last traded at levels from October 2024․
The yen was still in focus, having gained 2% on Thursday following a month of gradual losses as investors bet on Bank of Japan interest rate hikes while remaining alert to the possibility of yen-selling intervention. The rupee gave back some of those gains and was at 156․35 per dollar after touching 155․30 in the previous session․
The yen’s gain can squeeze carry trades set up to fund positions in risk-sensitive assets, but Bitcoin’s gain remained intact. Bitcoin traders will be watching to see if spot Bitcoin ETF inflows stay positive through the end of the week. If they do, it would indicate institutional appetite is extending beyond the one-day pop․
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Weakening expectations from the Fed and strong crypto prices kept Fed policy in focus, and with a Fed meeting next month, the futures pricing, bond yields and dollar are likely to be key inputs for traders looking at demand for the digital assets․
