Bitcoin climbed back above $81,000 on Friday as traders scaled back expectations for a Federal Reserve rate increase this month, helping lift cryptocurrencies and other risk assets. Despite the sharp daily rebound, most major tokens remained close to where they started the week.
BTC was trading above $81,000 during Asian morning hours, up roughly 4% over the previous 24 hours. Markets are now pricing the probability of a September Fed hike at around 50%, compared with more than 63% earlier in the week, based on CME FedWatch data.
The shift in monetary-policy expectations helped push Treasury yields lower and encouraged renewed demand for riskier investments.
Fed Governor Christopher Waller added to the dovish sentiment, saying he would favor leaving rates unchanged if inflation continued to ease. U.S. Treasuries and gold also held onto gains recorded during Thursday’s New York session.
Zcash Outpaces Major Cryptocurrencies
Zcash posted the biggest gain among the major tokens, rising nearly 15% in the past 24 hours and about 20% over the last seven days. The move has widened its lead over most other large cryptocurrencies.
Hyperliquid’s HYPE advanced approximately 6%, while XRP gained close to 6%. Ether, BNB and dogecoin climbed between 4% and 5%, with Solana adding nearly 3%.
TRON was the weakest major token, gaining just over 1%.
The broader weekly picture was much quieter. Bitcoin was up about 1% over seven days, while ether and XRP were nearly flat. Solana and TRON had each fallen close to 3%, according to CoinDesk data.
ETF Demand Remains Uneven
U.S. spot Bitcoin ETFs recorded roughly $277 million in net inflows on Thursday, according to provisional figures. The latest reading came after four trading sessions that alternated between gains and outflows.
While the inflow is encouraging, the funds have not yet produced a sustained buying streak that would offer stronger evidence of persistent institutional demand.
Global equities also moved higher. MSCI’s Asia Pacific index gained almost 1%, while the All Country World Index advanced for a third consecutive session.
The dollar stabilized after reaching its weakest level since May, while an index tracking Asian currencies rose to its highest level since October 2024.
Yen Rally Tests Bitcoin’s Resilience
The Japanese yen remained a key focus after gaining around 2% on Thursday, reversing roughly a month of steady weakness. Traders increased expectations for further Bank of Japan rate hikes and monitored the possibility of intervention by Japanese authorities to support the currency.
The yen later gave back some of its gains, trading near 156.35 per dollar after reaching 155.30 in the previous session.
A stronger yen can weigh on carry trades, which are frequently used to finance positions in riskier assets. Bitcoin’s ability to remain above $81,000 despite the yen’s advance suggests that risk appetite has not been significantly disrupted.
The next test will be ETF flows through the end of the week. Continued inflows could indicate that investors view the shift in rate expectations as a more durable change rather than a temporary market rebound.
