Bitcoin Climbs Above $81,000 as Treasury Yields Fall and Regulatory Developments Draw Attention

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.