Bitcoin has broken above US$81,000 in a sharp risk-on rally as falling US Treasury yields, a weaker dollar and easing expectations for another Federal Reserve interest rate hike brought buyers back into cryptocurrency markets.
The world’s largest cryptocurrency was trading around US$81,026, up about 4.7%, after reaching its highest level since mid-May. Ethereum climbed 4.5% to about US$2,501, while XRP jumped more than 9% to US$1.46 and Solana added almost 6% to US$105.
The rally marks a significant turnaround after Bitcoin had fallen towards US$76,000 earlier in the week amid rising bond yields, geopolitical uncertainty and concerns the Federal Reserve could be forced to tighten monetary policy again.
Waller comments trigger risk-on move
The catalyst came from Federal Reserve governor Christopher Waller, who indicated he would favour keeping rates unchanged at the September meeting if upcoming inflation data showed continued progress towards the Fed’s target.
His comments prompted traders to scale back expectations for a rate increase and sent Treasury yields lower.
The US 10-year yield retreated towards 4.75% from around 4.82% a day earlier, while the two-year yield dropped towards 4.33%. The US dollar also weakened, with the DXY dollar index falling below 99.
That combination provided a substantial tailwind for Bitcoin and other risk-sensitive assets.
Bitcoin also pushed through its closely watched 50-week moving average near US$81,041, a technical level it had not traded above since late 2025.
Altcoins join the rally
The move was broad rather than confined to Bitcoin.
XRP was among the strongest large-cap cryptocurrencies, rising more than 9%, while BNB, Solana and Dogecoin also posted sizeable gains.
Crypto-linked equities rallied even harder on Wall Street. Robinhood jumped around 17%, while Coinbase gained about 10%, as investors increased exposure to businesses leveraged to higher cryptocurrency prices and trading activity.
However, there are reasons for caution.
Earlier data showed Bitcoin spot exchange-traded funds had recorded around US$236 million of net outflows, while stablecoin supply had stagnated, suggesting the rebound initially lacked strong spot-market demand.
Some of the latest rally may therefore reflect short covering and traders rapidly repositioning as interest-rate expectations shifted rather than a decisive return of longer-term capital.
Jobs and inflation now in focus
The next test comes from US economic data.
Investors will be watching the August employment report closely, although next week’s inflation figures could prove even more important in determining whether the Federal Reserve holds rates steady or resumes tightening.
Bitcoin’s return above US$80,000 has improved the technical picture, but maintaining momentum above the US$81,000 area will be important after several failed rallies this year.
For now, crypto is once again trading as a high-beta expression of the macro outlook: lower yields and a weaker dollar are lifting Bitcoin, but another inflation shock could quickly put the rate-hike trade back on the table.