The crypto market gained more than $112 billion on September 3 as Bitcoin climbed back above $81,000.
The recovery followed a fall in US government bond yields and comments from Federal Reserve Governor Christopher Waller that eased fears of an imminent interest-rate increase.
Rate concerns ease after Waller’s comments
Waller said that he could support keeping interest rates unchanged at the Federal Reserve’s September meeting if inflation continues to cool.
The comments came when he spoke at a Reuters event, and the comments provided some relief for investors who were concerned about the borrowing cost rising again. Following this, US Treasury yields declined, while the dollar also weakened.
When these changes occur, assets such as cryptocurrencies usually see positive moves, as lower yields make safer interest-paying investments less attractive, while a weaker dollar can make Bitcoin cheaper for buyers using other currencies.
The reaction also extended to US stocks and shares linked to digital assets, which rose, meaning that the demand for riskier investments increased.
Bitcoin leads a broad crypto recovery
Bitcoin rose 4.91% from its daily opening price of approximately $77,307 to $81,100, reaching a daily high near $81,392.
But apart from Bitcoin, the total crypto market capitalization increased by 4.35% to $2.7 trillion, adding around $112.4 billion. Also, the total market capitalization, excluding stablecoins, increased by 5.05% to $2.42 trillion.
The price of Bitcoin is now approaching the $82,000 to $82,500 region that it had previously struggled to break. If it’s able to move above this area, it will see more price recovery.
The charts also showed that there has been an increase in buying activity, with market momentum moving to an elevated range for Bitcoin and the wider crypto market. This does not mean prices must fall, but there is a possibility of a pause after such a sharp daily gain that was seen.
Final Summary
- The market added about $112.4 billion as Bitcoin returned above $81,000.
- The recovery was aided by falling bond yields and reduced expectations of a September rate increase.
Credit: Source link