Bitcoin was priced at around $81,282, reflecting a 5.54% gain on the day, with its value holding above the $80,000 threshold. Market pricing for a rate increase in September fell to around 50%, compared with approximately 70% the previous day. The overall cryptocurrency market reached a valuation of $2.72 trillion, coinciding with $691 million in liquidations.
Bitcoin climbed back above the $81,000 threshold on Friday, continuing a recovery that began earlier in the week. The trend accelerated after Federal Reserve Governor Christopher Waller indicated he favoured leaving interest rates unchanged for the current month. Expectations for a rate increase in September were revised downward in market pricing, while appetite for digital assets recovered.
The aggregate value of the cryptocurrency market reached $2.72 trillion, reflecting a rise of approximately 5% across the trading day. Zcash, XRP, and Hyperliquid recorded the steepest gains as the broader token market moved in tandem with Bitcoin. Blockchain records indicated a notable unwinding of short positions as leveraged traders faced forced liquidations.
The Crypto Fear and Greed Index climbed to a reading of 78, placing it within greed territory, a notable turnaround from the low readings recorded just weeks prior. Investors are monitoring upcoming price data ahead of the Federal Reserve's 16 September policy meeting.
Real-time figures show Bitcoin changing hands at $81,282.87, reflecting a 5.54% gain over the preceding 24-hour period. The total market value reached $1.63 trillion, while trading activity across a 24-hour window amounted to $40.56 billion. Bitcoin's share of the overall cryptocurrency market stood at approximately 59.87%.
According to Balaji Srihari, VP of Business at CoinSwitch India, Bitcoin's overall trajectory remains positive while it holds above its primary moving averages. Srihari pointed to a daily RSI reading above 73 and an hourly RSI exceeding 80 as indicators of overextended momentum, adding that a near-term consolidation would be a natural development at that point. According to Srihari, the $80,000 level represents notable support, while a sustained break above $83,000 could pave the way for additional gains.
Mudrex's Head of Business, Prateek Gupta, attributed the price movement to remarks by Waller supporting an unchanged interest rate. The probability of a rate increase in September dropped by 12 percentage points to 54.6% in the wake of those comments. According to Gupta, the relationship between Bitcoin and gold has reached its strongest alignment since 2020.
Six consecutive days of atypically elevated capital inflows were cited as a potential cautionary indicator, with price resistance identified around $83,000 and a floor near $78,000. According to Delta Exchange research analyst Riya Sehgal, the combined value of the cryptocurrency market climbed 3.9%, reaching approximately $2.72 trillion.
Approximately $691 million in trading positions were closed out within a 24-hour window, representing a 166% increase from the previous session, with Sehgal noting that involuntary short covering likely contributed additional upward pressure on prices. According to Sehgal, the $82,000 to $84,000 range represents overhead resistance, while a retreat to the $78,000–$78,900 zone would constitute a normal corrective retest.
Zcash posted the strongest performance among the top ten cryptocurrencies, advancing 16.4% to approach $945, a level not seen in eight years. XRP climbed 7.7% while Hyperliquid gained 6.5% on the back of revived derivatives activity, with every top-ten token recording positive movement across the period.
Dollar-pegged stablecoins Tether and USDC held steady, while market-implied odds of a September rate increase retreated to around 50% by Friday. That shift unwound a prior advance that had taken the likelihood past the 70% threshold the previous day. Probability estimates had fallen to around 37% in the preceding week, reflecting shifts in Federal Reserve guidance, with market participants now pricing a potential second rate increase in March rather than December.
Net redemptions from American spot Bitcoin exchange-traded funds totalled approximately $135 million for the week ending Tuesday. Net inflows of $101 million over one trading day recovered only a portion of the funds that had previously left. Ethereum ETFs recorded roughly $37 million in net outflows over the period, with market observers noting that fund flows had yet to align with the spot price gains recorded earlier in the week.
About $691 million worth of crypto derivatives contracts were closed out in the preceding 24-hour period. That represented a 166% increase over the prior trading session, with short sellers absorbing the greatest losses, as the wave of compelled purchases provided additional momentum to Friday's gains. Market participants noted that high leverage positions in derivatives markets had the potential to produce notable price swings in either direction in the near term.
Zcash climbed to around $940, a peak not seen since 2018, while futures trading volume neared $10 billion. The price advance appears linked to growing appetite for privacy-focused cryptocurrencies and a Grayscale ETF application currently under review, with ZEC posting the strongest weekly performance across tracked tokens. Market participants noted that the token's price volatility served as a reminder that gains in alternative cryptocurrencies can unwind at a comparable pace.
Thursday brought gains across all three major indices, with the Dow climbing 1.18%, the S&P 500 adding 1.06%, and the Nasdaq posting a 1.40% increase. The VIX measure of market volatility fell by close to 6%, while equities across Asia recorded widespread advances, with gold retreating modestly and crude oil posting incremental gains through the trading day. Reduced market turbulence and a rebound in stock prices provided cryptocurrency with a boost ahead of Friday's session.
A new partnership between SoFi Technologies and crypto exchange Kraken will give the latter access to SoFi's banking infrastructure. The agreement strengthens the relationship between conventional financial institutions and cryptocurrency exchanges. Industry observers noted that the partnership reflects a wider pattern of financial institutions deepening ties with digital asset companies as the regulatory environment becomes clearer, and that such arrangements have the potential to broaden consumer access to cryptocurrency trading over time.
Strategy, the firm led by Michael Saylor, acquired 4,603 Bitcoin during the current week, returning to the market following a ten-week absence. Renewed purchasing activity pushed Bitcoin back above the $80,000 threshold. Shares in Strategy climbed by double digits following the announcement, outperforming the wider cryptocurrency market. Market observers noted that a sustained break above the $80,000 threshold could underpin further buying interest, while Brent crude reached a six-week peak of around $97 per barrel during the week.
Unverified accounts indicated that the administration was seeking a cessation of conflict between two nations. Reduced tensions around the conflict supported investor confidence that had already been bolstered by expectations of a more accommodative stance from the Federal Reserve. Market participants noted that a peace agreement had the potential to lift a persistent drag on digital asset markets in the near term.
The gains on Thursday pointed to a repositioning around interest rate expectations, with no new developments specific to the cryptocurrency market driving the move. Heading into the following week's trading session, Bitcoin is encountering a price ceiling in the $82,000 to $84,000 range. Sustained trading above the $83,000 threshold, supported by more consistent ETF inflows, could reinforce the argument for a broader price rebound, according to market participants.
Market participants indicated that the upcoming CPI data release and the Federal Reserve's rate announcement on 16 September were among the key data points under watch. High leverage levels and overbought momentum readings point to the possibility of a short-term price retreat, even within a broader upward trend. Trading desks generally favour measured allocation strategies rather than pursuing momentum following a single session's movement, with phased entry points and reduced exposure favoured until both economic data and geopolitical conditions stabilise.
