Bitcoin (COIN:BTCUSD) extended its rebound on Friday, rising above $81,000 as lower U.S. Treasury yields reduced expectations for an imminent interest rate increase and cryptocurrency markets assessed potential regulatory developments in Washington.
Bitcoin was up 4.3% at $81,069.6 by 05:28 ET (09:28 GMT). The cryptocurrency had briefly moved above $82,000 on Thursday, reaching its highest level in almost four months.
The absence of further military action between the U.S. and Iran also coincided with the improvement in market sentiment.
Cryptocurrency-related equities participated in the advance, with Strategy, the largest corporate Bitcoin holder, rising nearly 18% during Thursday’s trading session.
Lower Rate Expectations Support Bitcoin Rebound
Bitcoin was on course to gain 4.3% for the week, putting the cryptocurrency on track for a third consecutive weekly advance.
The latest gains followed a decline in U.S. Treasury yields after Federal Reserve Governor Christopher Waller discussed the outlook for monetary policy.
Waller told Reuters that he was leaning towards leaving interest rates unchanged at the Federal Reserve’s September meeting, particularly if forthcoming inflation figures show that price pressures are moderating.
Expectations for a September rate increase subsequently declined. CME FedWatch showed a 50.4% probability of a hike, down from more than 60% earlier in the week.
The latest move follows a period of sensitivity to bond-market developments for Bitcoin, whose late-August advance was interrupted as Treasury yields increased.
Clarity Act Vote Expected on September 15
Regulatory developments were another focus for cryptocurrency markets after Securities and Exchange Commission Chair Paul Atkins commented on the Clarity Act.
Atkins said he expects the Senate to vote on the legislation on September 15. He also called for policymakers to approve the measure and send it to President Donald Trump by the end of the month.
The SEC is also preparing cryptocurrency legislation that could operate alongside the Clarity Act, according to Atkins.
Progress on the Clarity Act has previously been delayed by disagreements in Congress concerning stablecoin yield payments and proposed restrictions on cryptocurrency trading by policymakers.
Altcoins Join Broader Crypto Advance
Other major cryptocurrencies also recorded gains on Friday, with the broader market heading towards a third consecutive positive week.
Ethereum rose more than 5% to $2,522.53 and was up 4.3% for the week.
XRP advanced 6.6%, taking its weekly gain to 7%, while BNB increased 2.5% on Friday and 5% for the week.
Solana gained 3.9% and Cardano rose 8%. Dogecoin and $TRUMP also advanced, rising 5.8% and 8.1%, respectively.
Leave a Reply