Bitcoin extended its rebound on Friday, rising 4.2% to $80,943.6 as fading bets on a near-term U.S. interest rate hike and encouraging comments on crypto regulation lifted sentiment. The token briefly touched a near four-month high above $82,000 in the prior session, while altcoins across the board also posted broad weekly gains.
Rate-hike bets fade, yields drop
Bitcoin's Thursday and Friday rally was fueled chiefly by a sharp drop in U.S. Treasury yields, after Federal Reserve Governor Christopher Waller told Reuters he is leaning towards keeping interest rates steady at this month's meeting. His comments triggered a sharp reduction in bets on a September rate hike, with CME Fedwatch pricing a 50.4% chance, down from over 60% earlier in the week.
Steady rates favor Bitcoin, since its speculative nature leaves it highly sensitive to shifts in yields — the token's late-August rally was cut short by a brief spike in yields. A lack of any new military action between the U.S. and Iran also offered markets some relief. Crypto stocks logged strong gains overnight, and top corporate Bitcoin holder Strategy rallied nearly 18% in Thursday's session.
Regulatory hopes build around the Clarity Act
Bitcoin was also encouraged by comments from SEC Chair Paul Atkins, who said he expects the Senate to vote on the Clarity Act on September 15. He called on policymakers to pass the act and send it to President Donald Trump for approval by month-end. Atkins added that the SEC is preparing its own crypto legislation that could function alongside the act, which has largely stalled in Congress amid disagreements over stablecoin yield payments and restrictions on policymakers trading crypto.
As a result, Bitcoin was set to add 3.5% this week, its third straight week of gains.
Altcoins post broad weekly gains
Broader crypto prices advanced on Friday and were also headed for a third straight week of gains. Ethereum rose 4% to $2,509.53, up 2.1% this week, while XRP surged 6.1% and gained 3.7% this week.
BNB rose 3.8% and was up over 4% this week, while Solana rose 2.9% and Cardano jumped 8%. Memecoins Dogecoin and $TRUMP rose 4.8% and 6.4%, respectively.
Source: Cryptocurrency News
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