Bitcoin Rises Above $81,000 as Rate Hike Expectations Ease

Bitcoin (COIN:BTCUSD) rose sharply on Friday, extending its recent gains as expectations for a near-term U.S. interest rate increase declined and investors assessed comments on cryptocurrency regulation from U.S. officials.

Bitcoin gained 4.3% to $81,069.6 by 05:28 ET (09:28 GMT), after briefly trading above $82,000 during the previous session, its highest level in almost four months.

Markets also received some relief from the absence of further military action between the U.S. and Iran.

Crypto-related equities advanced during Thursday's session, with Strategy, the largest corporate holder of Bitcoin, gaining almost 18%.

Bitcoin Heads for Third Consecutive Weekly Gain

Bitcoin was on course for a weekly increase of 4.3%, which would mark its third consecutive week of gains.

The cryptocurrency's advance on Thursday and Friday coincided with a decline in U.S. Treasury yields following comments from Federal Reserve Governor Christopher Waller regarding the outlook for interest rates.

Waller told Reuters that he was leaning towards keeping rates unchanged when the Federal Reserve meets later in September, particularly if upcoming inflation data indicate that price pressures are moderating.

Following the comments, expectations for a September rate increase declined. CME FedWatch indicated a 50.4% probability of a rate hike, compared with more than 60% earlier in the week.