The Bull Market Heated Up After the Fed’s Statement: Bitcoin Price Surpassed $81,000 – What’s Going On?

Bitcoin ($BTC) surged following dovish statements from the Fed. Bitcoin climbed above $81,000 as expectations of a rate hike diminished after Fed Board member Christopher Waller indicated he might support keeping interest rates unchanged in September.

Waller stated today that, barring any unexpected increases in upcoming inflation data, the Fed favors maintaining current interest rate levels at its September 15-16 meeting.

While acknowledging that inflation is still “significantly above” the Fed’s 2 percent target, Waller said recent data indicates that the disinflation process is beginning to strengthen again. Waller also stated that the impact of tariffs on prices remains limited and that rising energy prices have not created significant inflationary pressure in other areas of the economy.

Waller summarized his approach by saying, “Let’s give disinflation a chance. We can wait one meeting,” arguing that a 25 basis point rate hike in a single meeting would not quickly bring inflation down to the Fed’s 2 percent target. However, Waller also emphasized that he could support a rate hike if inflation accelerates again in August.

The Likelihood of a Fed Interest Rate Hike Has Sharply Dropped