Bitcoin climbed above $77,200 on Wednesday following comments from New York Federal Reserve President John Williams that provided relief on inflation and rate-hike concerns.
Williams told CNBC he sees no clear evidence that current policy is insufficient to control inflation toward the Federal Reserve's 2% target. He attributed recent increases in Treasury bond yields primarily to solid U.S. economic performance and heavy investment in artificial intelligence and technology, rather than inflation pressures. The 10-year Treasury yield settled near 4.78% following his remarks, down from session highs near 4.81%.
Williams acknowledged that oil prices driven by geopolitical tensions and tariffs remain inflation factors but noted signs of easing price pressures. He stated the labor market remains solid and the Federal Reserve needs additional data before making its next rate decision.
His measured tone contrasted with recent hawkish signals from Fed Chair Kevin Warsh at Jackson Hole, which had raised rate-hike expectations. According to CME FedWatch Tool data, traders currently assign roughly 66% probability to a 25 basis-point rate increase at the September Federal Open Market Committee meeting.
Bitcoin responded with a 1% gain in the hour following Williams' comments. The U.S. dollar index eased to around 99.55 as rate-hike urgency appeared to diminish.
Derivatives market data showed increased activity, with total Bitcoin futures open interest climbing 1% to $53.74 billion over four hours. Trading volume expanded modestly over the preceding 24 hours.
Market participants are monitoring upcoming U.S. employment data, inflation figures, and the September FOMC decision for clearer direction on Bitcoin's price trajectory.
