Bitcoin Price Surge
Bitcoin surged 5.5% to $81,569.1 by 17:17 ET (21:17 GMT) on Thursday, breaking the $80,000 barrier for the first time since August 28. The rally occurred alongside a broader rally in risk assets driven by falling U.S. Treasury yields.
U.S. Treasury Yield Movement
After a period of multi‑year highs, the benchmark U.S. 10‑year Treasury yield eased 2.2 basis points to close at 4.772%, while the 2‑year yield slipped 4.6 basis points to 4.340% on the same day. Earlier in the week the 10‑year had reached its highest level since November 2023 and the 2‑year its highest since July 2024.
Federal Reserve Commentary
Fed Governor Christopher Waller, speaking in a Reuters NEXT interview in Washington, D.C., noted that although inflation remains above the Federal Open Market Committee’s 2 percent target, recent data show signs of disinflation. He indicated a willingness to hold the federal funds rate at its current setting if the trend continues over the next two weeks, marking a less hawkish tone than Fed Chair Kevin Warsh’s recent Jackson Hole remarks.
Market Perspective on Bitcoin Rally
Andrew Forson, president of DeFi Technologies, cautioned against attributing Bitcoin’s price move solely to liquidity released from Treasury markets. He argued that markets typically demand higher risk premiums when capital exits Treasuries, yet Bitcoin has risen even as the 10‑year yield climbed nearly 10 basis points in recent weeks. Forson highlighted recent buying by the corporate holder Strategy and growing expectations of clearer U.S. regulatory guidance as additional support for the rally.
Regulatory Outlook
SEC Chair Paul Atkins announced that the Senate is expected to hold a procedural vote on the Clarity Act on September 15, with the legislation likely to reach President Donald Trump’s desk later in the month. Atkins also disclosed that the SEC is preparing its own Regulation Crypto Assets proposal, which could operate alongside the Clarity Act and may be implemented even if the Act does not pass Congress. He described the proposal as a historic step toward establishing the United States as a global crypto capital.
Altcoin Performance
In tandem with Bitcoin, other major cryptocurrencies posted gains: Ether rose 5% to $2,509.63, XRP jumped 9.2%, BNB increased 5.6%, Solana rose 5.7%, and Cardano posted a 12.7% gain. Among meme tokens, Dogecoin and $TRUMP advanced 8.9% and 9.1% respectively.
Summary of Key Drivers
The convergence of retreating Treasury yields, dovish comments from a Fed governor, corporate buying activity, and anticipation of definitive U.S. crypto regulation collectively underpinned the sharp Bitcoin rally and broader crypto market gains.