Bitcoin rose back above $80,000 on Thursday after Federal Reserve Governor Christopher Waller signaled he could support holding interest rates steady in September. The move triggered a short squeeze that liquidated more than $415 million in short positions, while crypto-linked stocks like Strategy and Coinbase jumped even faster than bitcoin itself.
Bitcoin traded back above $80,000 on Thursday, rising 4.8% over 24 hours to $80,510, after Fed Governor Christopher Waller said he could support holding interest rates steady this month. The rebound reversed a slide that followed Fed Chair Kevin Warsh's hawkish Jackson Hole keynote last week.
The token ranged between $76,858.60 and $80,847.07 over 24 hours, according to CoinGecko data cited by The Defiant. It also touched as high as $81,282 Thursday morning in New York, Bitcoin Magazine reported, a nearly 3% move over the period.
Waller signals a rate hold
The catalyst was Waller's appearance at a Reuters NEXT newsmaker interview in Washington, where he said he'd be inclined to support holding the Fed's benchmark rate at its current level if upcoming inflation data keeps improving. Traders adjusted fast: the odds of a September rate hike on the CME FedWatch tool fell to 50.4%, down from 63.2% a day earlier. On Polymarket, bettors priced a no-change outcome at 56% on $84.2 million of event volume, up from 41% on Wednesday.
Short sellers get squeezed
CoinGlass data show more than $500 million in crypto liquidations over 24 hours, with short positions accounting for more than $415 million of that total as rising prices forced short sellers to buy back positions. More than 119,000 traders were liquidated in the past day.
Crypto-linked stocks rally too
The rally spread to equities tied to bitcoin. Bitcoin treasury company Strategy traded more than 13% higher on Thursday, after resuming bitcoin purchases this week following a 10-week pause. Coinbase stock rose 11% over the same period, while miner HIVE Digital led gains with a 13% jump.
What's next
The Bureau of Labor Statistics releases the August jobs report Friday morning, the last major data point before the Fed's September 15-16 meeting. Waller himself expects little change: job creation has averaged 60,000 a month through July, and unemployment held at 4.1%.
Sources: Decrypt, The Defiant, Bitcoin Magazine
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