Crypto Market Rockets to $2.73T as Fed Rate Hike Fears Evaporate

The move stretched across the broad market rather than staying concentrated in one corner. Bitcoin climbed roughly 4.8% and touched $81,364, while ethereum moved back above $2,500, solana reclaimed $104, BNB traded around $720 and XRP jumped roughly 8% to 9% toward $1.46.

Fed Rate Bets Flip and Crypto Traders Pile Back In

Federal Reserve Gov. Christopher Waller provided the spark after signaling that cooling inflation could convince him to support keeping the federal funds rate at its current 3.50% to 3.75% range when policymakers meet Sept. 15-16.

The reaction stretched well beyond crypto. Polymarket odds of a September rate increase fell from roughly 59% Wednesday to 42% following Waller’s remarks, while Treasury yields eased and gold gained about 2%. Crypto assets quickly joined the broader risk-on move.

Lower expectations for another rate increase matter because tighter monetary policy generally makes speculative assets less attractive. When those fears ease, investors can become more willing to move capital into stocks, crypto, and other assets carrying greater risk.

Altcoins Light Up as Double-Digit Gains Spread

The breadth of Thursday’s rally showed up clearly among altcoins. Zigchain (ZIG) led the pack with an 18.75% gain over 24 hours, followed by zcash ($ZEC) at 18.06%, non-playable coin (NPC) at 17.78%, ethena (ENA) at 17.51%, and midnight (NIGHT) at 16.70%.