Bitcoin Reclaims $80,000 as Fed Governor Signals Rate Hold

Bitcoin surged back above $80,000 on Thursday, gaining 4.8% to $80,510, after Federal Reserve Governor Christopher Waller said he could back holding the federal funds rate steady if upcoming data remain stable.

Fed Commentary Shifts Market Expectations

Waller told Reuters NEXT that a steady rate target would be his inclination provided August inflation data hold up over the next two weeks. He linked his stance to the upcoming CPI release on September 11, noting that three‑month core inflation remains above the Fed’s 2% goal.

Market Repricing on Rate Outlook

Polymarket traders reduced the probability of a September rate hike from 59% to 43% after Waller’s remarks. The 10‑year Treasury yield slipped to 4.754%, and spot gold rose 2.0% to $4,477 per ounce. The S&P 500 gained 0.46%.

Crypto Price Action

Alongside Bitcoin, Ether rose 4.3% to $2,486. XRP jumped 8.8% to $1.45, Solana gained 5.9% to $104.48, and BNB increased 5.1% to $718.99. Total crypto market value reached $2.74 trillion, with Bitcoin dominance at 58.93%.

Analyst Views

Bitget chief analyst Ryan Lee noted that Bitcoin has absorbed macro pressures without a major sell‑off, citing reduced leverage and continued ETF demand as support. Conversely, Wincent senior director Paul Howard warned that higher U.S. rates could keep the $80k resistance intact.

ETF Flows and DeFi Metrics

U.S. spot Bitcoin ETFs recorded $101.1 million of inflows on Wednesday, while spot Ether ETFs saw a $23.5 million outflow. DeFi total value locked stood at $84.96 billion, and stablecoin supply was $303.89 billion.