Bitcoin jumped past $80,000 on Sept. 3 for the first time in nearly a week, adding more than 5% as falling Treasury yields and dovish comments from Fed Governor Christopher Waller lifted risk appetite. Ether and other major tokens rallied alongside it, while investors also watched for progress on the Clarity Act, a pending U.S. crypto regulation bill.
Bitcoin rose 5.5% to $81,491.82 on Sept. 3, retaking the $81,000 level for the first time since May. Cryptocurrency markets benefited from concerns about rising bond yields and lower odds of a Federal Reserve rate hike. Separately, U.S. Treasury yields eased alongside a broader rally in risk assets on Thursday.
Yields ease from multi-year highs
The rally followed weeks of a bond-market selloff that pushed yields to multi-year highs, driven by inflation jitters tied to elevated oil prices, worries over debt issued to fund AI infrastructure, and growing fiscal deficits. But the 10-year Treasury yield fell 2.2 basis points to 4.772% on Thursday, while the 2-year yield slipped 4.6 basis points to 4.340%, extending a pullback from levels not seen in years.
Fed Governor Christopher Waller added to the mood, saying "we are finally seeing some signs of disinflation" in prepared remarks at a Reuters NEXT interview. He said he would be inclined to support holding the interest rate steady if the trend continues over the next two weeks, a less hawkish tone than Fed Chair Kevin Warsh's Jackson Hole speech last week.
SEC chair points to a September vote on crypto rules
SEC Chair Paul Atkins said this week he expects the Senate to hold a key procedural vote on the Clarity Act on Sept. 15, calling it likely to reach President Donald Trump's desk this month. Atkins also said the SEC is preparing its own Regulation Crypto Assets proposal that could function alongside the legislation, and that the agency could proceed with its own framework even if the Clarity Act does not clear Congress.
Altcoins track Bitcoin's gains
Ether jumped 5% to $2,509.63, while XRP soared 9.2%.
BNB climbed 5.6% and Solana improved 5.7%, while Cardano saw an outsized gain of 12.7%. Bitcoin isn't close to retaking its all-time high, but it has gained almost 27% in the past month as sentiment swings back toward greed.
Sources: The Motley Fool, Investing.com
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