Bitcoin has regained the $80,000 mark. The significant drop in U.S. Treasury yields and reduced concerns over further interest rate hikes by the Federal Reserve have revived investor sentiment.
As of 8 a.m. on September 4, Bitcoin was trading at $81,238, up 5.28% from the previous day, according to global cryptocurrency market site CoinMarketCap.
Major altcoins also showed strong performance. Ethereum rose 4.97% to $2,498.91, while Ripple (XRP) increased by 7.94% to $1.45. Solana was up 4.52% at $104.12, and Binance Coin (BNB) climbed 5.37% to $723.
Market analysts attribute the recovery in investor sentiment to the calming of the recent surge in U.S. Treasury yields and dovish comments from Federal Reserve officials, which have eased fears of additional interest rate hikes.
On September 3, Christopher Waller, a Federal Reserve governor, indicated that he would support keeping interest rates steady if inflation pressures show signs of easing in upcoming price indicators, according to Reuters.
On the same day, John Williams, president of the New York Federal Reserve Bank, commented that the recent spike in U.S. Treasury yields reflects a strong economic situation rather than a malfunction in market functions, emphasizing the need to monitor price trends carefully.
Following these remarks, market apprehension regarding further rate hikes has diminished. According to the CME FedWatch tool, the likelihood of the Federal Reserve maintaining its current interest rate in September rose from 36.8% to 49.5% in the futures market.
The recent surge in U.S. Treasury yields has also seen a decline for two consecutive days. As of 3 p.m. on September 3, the yield on the benchmark 10-year U.S. Treasury note was recorded at 4.761%, down 3 basis points from the previous session.
Investor sentiment in the cryptocurrency market is rapidly recovering. As of today, the CoinMarketCap 'Fear and Greed Index' stands at 78, indicating a state of 'greed.'
Meanwhile, as of 8 a.m., Bitcoin was trading at 110.69 million won ($80,479) on the domestic exchange Bithumb, reflecting a 0.21% increase from the previous day. The 'Kimchi Premium' is at 0.56%, indicating that domestic Bitcoin prices are slightly higher than those overseas.
* This article has been translated by AI.
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