Crypto Market Gains $112B as Bitcoin Reclaims $81K on Fed Comments

The crypto market gained more than $112 billion on September 3 as Bitcoin climbed back above $81,000.

The recovery followed a fall in US government bond yields and comments from Federal Reserve Governor Christopher Waller that eased fears of an imminent interest-rate increase.

Rate concerns ease after Waller’s comments

Waller said that he could support keeping interest rates unchanged at the Federal Reserve’s September meeting if inflation continues to cool.

The comments came when he spoke at a Reuters event, and the comments provided some relief for investors who were concerned about the borrowing cost rising again. Following this, US Treasury yields declined, while the dollar also weakened.

When these changes occur, assets such as cryptocurrencies usually see positive moves, as lower yields make safer interest-paying investments less attractive, while a weaker dollar can make Bitcoin cheaper for buyers using other currencies.

The reaction also extended to US stocks and shares linked to digital assets, which rose, meaning that the demand for riskier investments increased.

Bitcoin leads a broad crypto recovery

Bitcoin rose 4.91% from its daily opening price of approximately $77,307 to $81,100, reaching a daily high near $81,392.