Bitcoin returned above the $81,000 mark on Friday as expectations for a Federal Reserve rate hike in September weakened sharply, triggering a broad recovery across major cryptocurrencies.
BTC gained around 4% over 24 hours during Asian morning trading. Traders now see roughly a 50-50 chance of a September rate increase, compared with odds above 63% earlier in the week, according to the CME FedWatch tool.
Lower expectations for tighter monetary policy pushed Treasury yields down and encouraged renewed buying across risk assets.
The latest move was supported by comments from Fed Governor Christopher Waller, who said he would favor keeping rates unchanged if inflation continued to cool. U.S. Treasuries and gold also retained much of their gains from the previous New York session.
Zcash Leads Gains
Zcash emerged as the strongest performer, jumping nearly 15% in 24 hours and about 20% over the past week. The privacy-focused token has significantly outperformed most of the broader crypto market during its recent rally.
HYPE, the native token of Hyperliquid, advanced about 6%, while XRP climbed nearly 6%. Ether, BNB and dogecoin posted gains of between 4% and 5%.
Solana rose almost 3%, while TRON gained slightly more than 1%, leaving it at the bottom of the major-token rankings for the session.
On a seven-day basis, however, gains remained limited. Bitcoin was up about 1%, ether and XRP were roughly unchanged, while Solana and TRON were each lower by nearly 3%, according to CoinDesk data.
Bitcoin ETF Flows Need to Improve
U.S. spot Bitcoin ETFs attracted approximately $277 million on Thursday based on preliminary figures. That followed a volatile stretch in which four consecutive sessions alternated between inflows and outflows.
The latest inflow has yet to establish a sustained trend. A longer sequence of positive flows would provide stronger evidence that institutional investors are increasing their exposure rather than simply buying a short-term dip.
Global markets remained supportive of risk-taking. MSCI’s Asia Pacific index advanced nearly 1%, while the All Country World Index posted its third straight daily gain.
The dollar stabilized after reaching its lowest level since May, while Asian currencies strengthened to their highest level since October 2024.
Yen Strength Adds a Risk
The Japanese yen was another major focus for traders after surging roughly 2% on Thursday and reversing a month of losses. Markets increased bets on further Bank of Japan rate hikes and continued to monitor the possibility of intervention from Japanese officials.
The yen later eased back, trading around 156.35 against the dollar after reaching 155.30 during the previous session.
A stronger yen can reduce the appeal of carry trades, which often provide financing for riskier market positions. Bitcoin’s ability to hold its recovery despite the yen’s strength suggests that investors have so far absorbed the potential liquidity pressure.
Whether Bitcoin can maintain its gains will partly depend on ETF activity. Sustained inflows would strengthen the case that the latest move reflects a broader change in investor positioning rather than a temporary rebound.
