Bitcoin Reclaims $80,000, Jumps 5% as Fed's Waller Signals Support for Rate Pause

Bitcoin reclaimed the $80,000 level as cautious voices within the U.S. Federal Reserve on additional rate hikes fueled a broad risk-on rally.

As of 9:30 a.m. on the 4th, Bitcoin was trading at $81,250 (approximately 111 million won) on CoinMarketCap, up 5.52% from the same time a day earlier. On South Korean exchange Bithumb, it rose 0.57% to 111.09 million won (approximately $82,000). According to CoinDesk, Bitcoin was at $81,216.93 as of 8:20 a.m., up 5.39% over 24 hours. This marks the first time Bitcoin has traded above $80,000 since August 28.

The immediate catalyst was remarks by Federal Reserve Governor Christopher Waller. In an interview with Reuters on the 3rd, he indicated he could support holding the benchmark rate steady if inflation pressures show clear signs of easing. "Inflation has finally started to show signs of cooling," he said, adding that "if the data over the next two weeks continues this trend, I would support maintaining the federal funds rate at its current level."

The comments quickly shifted market expectations for the rate path. The U.S. 2-year Treasury yield fell more than 4 basis points to 4.342%, while the 10-year yield dropped more than 2 basis points to 4.772%. The dollar weakened, and major New York stock indexes closed higher across the board.