Bitcoin price climbs above $80,500 as expectations for Federal Reserve interest rate hikes ease

On Friday, the price of Bitcoin approached 7.63 million rupees, as the cryptocurrency market gained upward momentum following a cooling of expectations regarding a Federal Reserve interest rate hike in September. Ethereum (ETH) traded near 236,000 rupees, with other major altcoins also seeing broad gains. Market participants noted that the shift in rate-hike expectations has encouraged buyers to return to risk assets; Bitcoin has also benefited from inflows into U.S. spot Bitcoin ETFs and renewed strategic buying. According to data from CoinGecko, Bitcoin was trading near $80,800 (approximately 7.63 million rupees), while Ethereum traded near $2,500 (approximately 236,000 rupees).

According to price-tracking data from Gadgets 360, Bitcoin—the world’s largest cryptocurrency—rose by 4% over the past 24 hours. Analysts attribute this recovery primarily to changing interest rate expectations, with the probability of a Federal Reserve rate hike in September falling from over 63% to approximately 50–55%. Lower interest rate expectations have eased pressure on bond yields, while inflows into ETFs have provided additional support.

On Friday, major altcoins saw mixed trading performance.
Binance Coin (BNB) was priced at approximately $723.91 (around 68,395 rupees), while Solana (SOL) traded near $103.74 (around 9,801 rupees). Ripple (XRP) stood at about $1.45 (around 137 rupees), and Dogecoin (DOGE) traded near $0.0869 (around 8.21 rupees).

Following a sharp rebound in Bitcoin, traders are keeping a close watch on resistance levels.
Prateek Gupta, Head of Business at Mudrex, noted that Bitcoin’s price has climbed above $80,800 (approximately 7.63 million rupees). He stated: “As a result, the probability of an interest rate hike in September has fallen by 12 percentage points to 54.6%, while a weaker US dollar has boosted demand for risk assets. Bitcoin’s price action has also moved more in sync with gold, with the correlation between the two reaching its highest level since 2020. However, historically, six consecutive days of unusually extreme capital flows are often accompanied by market volatility.”

Assessing Bitcoin’s recovery and the shifting outlook for interest rates, Vikram Subburaj, CEO of Giottus.com, remarked: “Bitcoin began to recover after the probability of a US interest rate hike in September dropped from over 63% to around 50%. Expectations of lower interest rates have eased pressure on bond yields and drawn buyers back to risk assets. Demand for ETFs has also provided support, though capital flows remain uneven. […] Investors should avoid chasing the market following large daily gains. […] Those entering now should buy in stages and maintain low leverage.”

Analysts suggest that, overall, the shift in interest rate expectations has encouraged buyers to return to risk assets, while the strengthening correlation between Bitcoin and gold is a development worth monitoring. They advise against aggressive trading, suggesting instead that investors wait for market confirmation—specifically, for Bitcoin to consistently close above the $83,300 (approximately 7.87 million rupees) level.

Cryptocurrency is an unregulated form of digital currency; it is not legal tender and carries market risk. The information provided in this article is not intended to be, nor does it constitute, financial advice, trading advice, or any other form of advice or recommendation from NDTV. NDTV shall not be held liable for any losses incurred from investments made in reliance on any advice, forecasts, or other information contained in this article.