Bitcoin extended its rally on Sept. 3, breaking above $81,000 after Federal Reserve Governor Christopher Waller signaled he could support holding interest rates unchanged at the Sept. 15-16 FOMC meeting, reducing near-term rate-hike expectations.
Waller said that if upcoming inflation data show continued progress toward the Fed's 2% target, he would be willing to keep the federal funds rate at 3.50%-3.75%. He argued that one more 25-basis-point hike would not quickly bring inflation to target and said: "Let's give disinflation a chance. We can wait one meeting." However, he emphasized he could support an increase if August inflation reaccelerates.
The tone contrasted with Fed Chair Kevin Warsh's hawkish Jackson Hole remarks. After Waller's comments, CME FedWatch data showed the probability of a September hike falling from 63.2% on Wednesday to 48.4%, while Polymarket priced a 38% chance of a hike. Markets now await August PPI and CPI releases on Sept. 10 and Sept. 11 as the key test before the Fed decision.
Bitcoin rose about 4.3% in 24 hours to $81,300, with market capitalization near $1.62 trillion and trading volume around $33 billion. Major altcoins followed: Ethereum climbed almost 4% to $2,495, BNB gained 4.7%, Solana added 4.6%, and XRP jumped 8.6% to $1.45.
Lower rate-hike odds reduce the appeal of Treasury yields and money-market instruments, supporting demand for risk assets. That dynamic has been visible in U.S. spot Bitcoin ETF flows, which attracted roughly $3.04 billion across nine positive sessions from Aug. 17 through Aug. 27 before $201.9 million in net withdrawals on Aug. 28.
