Bitcoin has climbed to $81,017, marking a 3.93% gain over 24 hours and reaching multi-month highs, according to The Economic Times. Ethereum has also surged 4.51% to $2,515, demonstrating broad-based crypto strength. The latest rally follows Thursday's dramatic intraday move when Bitcoin rallied 5% in a single day following Fed Governor Christopher Waller's comments at a Reuters event. As per CoinMarketCap, the global crypto market capitalisation has recovered significantly, going up 3.41% to $2.71 trillion. Among major altcoins, BNB, XRP, Solana, Tron, Hyperliquid, Dogecoin, and Cardano gained up to 6.91%, while in the past week, Bitcoin and Ethereum were up 1.67% and 0.91% respectively. The broader crypto market capitalisation increased by 4.35% to $2.7 trillion, adding around $112.4 billion.
Fed Governor Christopher Waller signaled he could back a September rate hold, providing a second tailwind for Bitcoin's rally. Waller noted that three-month core inflation slowed to 3.05% through July, down from 4.76% in February. According to CME FedWatch, September hike odds have dropped to 50%, down from 57% following Federal Reserve Chair Kevin Warsh's hawkish speech at the Jackson Hole event last week. Waller stated that "it may not take much acceleration in inflation to nudge me into supporting tighter policy," with his vote dependent on August inflation data. This development comes after policy makers split nine to three in July, with three officials pushing for a hike. Waller's comments at a Reuters event provided relief for investors concerned about rising borrowing costs, with US Treasury yields declining and the dollar weakening following his remarks. Weak labor data reinforced the move, with ADP reporting US private employers added just 38,000 jobs in August, falling short of expectations near 47,000 and marking the weakest increase since January.
Institutional demand has returned with spot Bitcoin exchange-traded funds (ETFs) drawing about $101.1 million in net inflows, led by the iShares Bitcoin Trust, according to BeInCrypto Markets data. The rally follows Thursday's significant institutional response, with $730.8 million net flows into spot BTC ETFs on the same day as Waller's comments. Spot Bitcoin ETFs also saw massive inflows in August, with a total net inflow of $307.45 million recorded in the third week of August, as per SoSoValue data. The impact of Fed policy on crypto markets has been substantial, with 2026 track record showing that decisions to hold interest rates have been bearish, with just one bullish BTC price reaction in April. Bitcoin rose nearly 5% from its daily opening price of approximately $77,307 to $81,100, reaching a daily high near $81,392. The broader crypto market capitalisation increased by 4.35% to $2.7 trillion, adding around $112.4 billion.
The recent Bitcoin rally is driven primarily by the US Treasury's debt buyback plan and the White House crypto summit wherein President Donald Trump hosted crypto and digital assets leaders to discuss the Clarity Act, according to experts. Rajagopal Menon, vice president at WazirX, noted that the US Securities and Exchange Commission's (SEC) 'Regulation Crypto Assets' -- a proposed regulatory framework has reinforced the industry's intent to regulate crypto and facilitate adoption. "Regulation improved sentiment, liquidity supported the move, and short covering accelerated it," Menon said. Balaji Srihari, VP business India at CoinSwitch, highlighted that growing institutional participation has strengthened Bitcoin's market structure, but macroeconomic shocks and sharp corrections remain key risks. On the crypto market's outlook, experts said that Bitcoin remains the strongest core crypto asset, but the path ahead is unlikely to be linear. Bitcoin can challenge its October 2025 record by the end of 2026, but that would require softer inflation, lower Treasury yields and sustained institutional inflows. For investors, the current market calls for measured allocation, with traders advised to watch support around $77,000–$78,000 and resistance near $80,000–$80,500. A convincing breakout can open the path towards $85,000 and subsequently $90,000.
Despite Bitcoin's strong performance, prediction market traders remain cautious about near-term upside potential. Polymarket traders give Bitcoin just a 32% chance of touching $100,000 this year, while Ethereum traders price a move to $3,500 at just 31%. The $85,000 Bitcoin contract jumped 43 points to 81%, while odds of a drop to $70,000 fell 28 points to 48%. Higher targets showed no 24-hour change, with the $95,000, $100,000, $110,000, and $120,000 contracts holding at 44%, 32%, 20%, and 12% respectively. Downside bets persist, with traders giving 72% odds that Bitcoin will revisit $75,000 and 56% odds that Ethereum will slip to $2,250. Friday's US jobs report will test whether the rate-pause trade holds, with positioning treating the move as a range shift rather than a path back toward record territory. The coin toss scenario for Fed policy decisions means any event from now to the announcement that gives certainty to an outcome will likely move markets to a greater extent.
