Bitcoin surges past $80K after Fed’s Waller backs rate hold

Bitcoin ↘ 1.11% surged past $80,000 on Thursday after Federal Reserve Governor Christopher Waller said he would support keeping interest rates unchanged at the central bank's September meeting, offering a lifeline to risk assets that had been weighed down by expectations of further tightening.

In remarks prepared for a Reuters interview in Washington, Waller said the three-month core inflation rate had fallen from 4.76% in February to 3.05% through July, a trajectory he called "encouraging" even as annual PCE inflation remains at 3.3%. "If there is continued progress toward our 2% goal, then I am willing to support holding the policy rate at its current level," he said, while cautioning that a hot August inflation print could put a hike "back on the table".federalreserve

Markets Respond

The dovish signal sent Bitcoin up roughly 5% to around $80,600, according to Benzinga, with Ethereum ↘ 0.82% gaining about 4% and XRP ↘ 1.52% rallying 8%. The move came against a backdrop of rising rate-hike expectations — CME FedWatch data earlier this week had placed the probability of a September increase at roughly 70%. Following Waller's comments, those odds dropped sharply, with CNBC reporting the probability of a hike fell to about 54.6%.benzinga+2

The crypto rally builds on a strong August in which Bitcoin gained approximately 25%, its best monthly performance in nearly two years. The token had briefly touched $80,000 in late August before pulling back, and Thursday's move marks a renewed test of that level.finance.yahoo+1

What Comes Next

The Fed will announce its decision following a two-day meeting on September 15–16. August CPI data, due before the meeting, will serve as the critical input. Waller made clear the decision is data-dependent: "If there is evidence that progress toward 2 percent inflation reversed in August, a small adjustment in our stance would help ensure that it resumes".federalreserve

Analysts at FX Empire noted that Bitcoin has formed a bull flag pattern on the daily chart, a continuation setup that could target $85,000 and eventually $100,000 if the breakout holds. Net inflows to Bitcoin spot ETFs remained positive this week at roughly $81 million, though the pace has slowed from August's record $3.5 billion.fxempire

The broader macro picture remains uncertain. Three Fed policymakers voted for an immediate quarter-point increase at the July meeting, and elevated oil prices continue to pose upside risks to inflation. Waller himself acknowledged geopolitical uncertainty, noting that "military conflicts, trade policy, and artificial intelligence" could all affect prices. For now, however, markets are treating his comments as a reprieve.finance.yahoo+1