Bitcoin rose above $81,000 on Friday, extending its recent recovery as concerns over an imminent U.S. interest rate hike eased. Positive remarks from senior U.S. officials on cryptocurrency regulation this week also helped improve market sentiment toward digital assets.
Bitcoin climbed 4.3 percent to $81,069.6 by 09:28 GMT before declining 0.12 percent, after briefly surpassing $82,000 in the previous session to reach a nearly four-month high.
On a weekly basis, Bitcoin was up 1.04 percent, putting it on track for its third consecutive week of advances.
Bitcoin rallies amid sharp decline in U.S. Treasury yields
In addition to regulatory developments, markets found some relief from the absence of further military action between the U.S. and Iran. Crypto-related stocks also posted strong gains overnight, with Strategy, the largest corporate holder of Bitcoin, jumping nearly 18 percent.
The cryptocurrency’s rally on Thursday and Friday was largely driven by a sharp decline in U.S. Treasury yields, following comments from Federal Reserve Governor Christopher Waller that eased concerns over near-term interest rate hikes.
Waller said he was inclined to support keeping interest rates unchanged at the Fed’s meeting later this month, particularly if forthcoming inflation data shows that price pressures are easing.
His remarks triggered a significant shift in rate expectations, with the probability of a September hike falling to 50.4 percent, according to CME FedWatch, from above 60 percent earlier in the week.
The prospect of interest rates remaining steady is positive for Bitcoin, whose speculative nature makes it particularly sensitive to movements in bond yields. The cryptocurrency’s late-August rally was similarly disrupted by a brief surge in yields.
Investors await Clarity Act developments
Bitcoin also drew support from comments by Securities and Exchange Commission Chair Paul Atkins, who said he expects the Senate to vote on the closely watched Clarity Act on September 15.
Atkins urged lawmakers to pass the legislation and send it to President Donald Trump for approval by the end of the month.
He added that the SEC was developing its own cryptocurrency legislation, which could work alongside the Clarity Act, a bill that has largely stalled in Congress.
Crypto markets have closely followed the Clarity Act as a potential milestone for greater regulatory certainty in the sector. However, the legislation has faced prolonged delays amid disagreements over provisions governing stablecoin yield payments and restrictions on policymakers trading cryptocurrencies.
Read: Bitcoin rises above $77,500 as investors await key U.S. regulatory developments
Ethereum surges to $2,524.62
Broader cryptocurrency prices also moved higher on Friday, putting the market on track for a third consecutive week of gains.
Ethereum, the world’s second-largest cryptocurrency, climbed 5.35 percent to $2,524.62, bringing its weekly gain to 4.3 percent.
XRP jumped 6.38 percent and was up 7 percent for the week, while BNB advanced 1.89 percent, taking its weekly gains to 5 percent.
Solana gained 3.46 percent, while Cardano rose 6.30 percent. Among memecoins, Dogecoin climbed 5.69 percent, while $TRUMP surged 0.37 percent.
