The cryptocurrency market capitalization grew by more than $112 billion on September 3 as Bitcoin climbed above $81,000, driven by easing interest-rate concerns and declining US Treasury yields.
Fed Comments Ease Rate Worries
Federal Reserve Governor Christopher Waller stated at a Reuters event that he could support keeping interest rates unchanged at the September Federal Reserve meeting if inflation continues to cool. His comments reduced investor concerns about potential borrowing cost increases.
Following these remarks, US Treasury yields declined and the dollar weakened. Lower yields typically make interest-bearing investments less attractive, directing capital toward riskier assets like cryptocurrencies. A weaker dollar can also make Bitcoin cheaper for international buyers.
Broad Market Recovery
Bitcoin rose 4.91% from its daily opening price of approximately $77,307 to reach $81,100, with a daily high near $81,392.
The total cryptocurrency market capitalization increased by 4.35% to $2.7 trillion. Excluding stablecoins, the market capitalization rose 5.05% to $2.42 trillion. US stocks and shares linked to digital assets also gained, reflecting increased demand for riskier investments.
Market Momentum
Bitcoin is approaching the $82,000 to $82,500 resistance region it had previously struggled to break. Charts showed increased buying activity, with market momentum reaching elevated levels for both Bitcoin and the broader crypto market.
