Fed Rate Comments Spark Powerful Bitcoin, Crypto Rally. Bitcoin ETFs Near Entries.

• Waller stated he's willing to support holding rates at current levels if disinflation continues, though he would consider a hike if inflation 'comes in hot'
• Over $443 million in crypto short positions were liquidated in 24 hours, including nearly $205 million in bitcoin shorts, amplifying the rally
• Crypto stocks jumped sharply with Circle up 16%, Robinhood surging 16% above its buy zone, and spot bitcoin ETFs gaining 5% while approaching buy points after reclaiming 200-day moving averages

Summary

Key Event: Bitcoin and cryptocurrency markets rallied sharply on Thursday following dovish comments from Federal Reserve Governor Christopher Waller, who indicated willingness to hold interest rates steady in September if inflation continues declining toward the Fed's 2% target.

Market Performance:

• Bitcoin surged nearly 5% to approximately $81,200, triggering over $443 million in crypto short liquidations, including $205 million in bitcoin shorts
• The 10-year Treasury yield declined 4 basis points to 4.76%
• U.S. Dollar Index dropped 0.6% to 98.99
• Bitcoin's 2026 decline narrowed to about 7%, though it remains well below its October record high of $126,200

Company Movements:

• Circle jumped 16%, clearing its 200-day moving average
• Strategy, Cipher Digital, HIVE Digital, and Riot Platforms all gained 11-16%
• Coinbase surged nearly 10% to its 200-day line
• Robinhood soared 16%, gapping above a cup-with-handle buy zone
• Spot bitcoin ETFs, including IBIT, gained approximately 5% and are approaching buy points after reclaiming 200-day moving averages

Market Context:

Cryptocurrency prices have rebounded significantly since mid-August due to Treasury Department bond buyback plans and renewed Trump administration efforts on crypto regulation. The Senate is scheduled to vote on the Clarity Act on September 15, though legislative timing faces challenges. If the bill fails, the SEC and CFTC have pledged to introduce their own market structure rules.