Bitcoin Jumps 6.8% to Four-Month High as Waller Eases Fed Rate-Hike Fears 

Bitcoin's price climbed to $82,240 early Friday European time, gaining roughly 6.8% over 24 hours and marking its highest level since May. 

The rally, which began late Thursday, was triggered by remarks from Federal Reserve Governor Christopher Waller that eased expectations of a September rate hike. 

Markets will turn their attention to the US August jobs report, due Friday, September 4, at 8:30 a.m. ET. As the last major economic data point before the Federal Reserve’s September meeting, the report could be a key market catalyst later in the day

On September 3, Waller said he would support holding the Fed's policy rate steady at the September meeting if incoming inflation data continued to cool. Swaps pricing shifted immediately, with markets moving to roughly even odds of a September hike, down from about 70% earlier in the week. 

Ethereum (ETH) rose 4.3%, XRP gained 5.8%, and Zcash (ZEC) led major-cap gainers with a 16.2% jump. The total crypto market capitalization rose more than 3.7% to $2.814 trillion. 

US-listed spot Bitcoin ETFs recorded roughly $730 million in net inflows on September 3, their strongest single-day haul since January, while an estimated $456 million in crypto futures short positions were liquidated over the same period.

The move coincided with broad gains across risk assets. The S&P 500 rose 1.06% to 7,747.71, the Nasdaq Composite gained 1.4% to 26,584.06, and the Dow Jones Industrial Average added 624.16 points, or 1.18%, to close at 53,686.11. 

The US dollar fell to its lowest level since May, and the two-year Treasury yield dropped three basis points to 4.34%. 

Safe-haven assets moved higher too: gold futures reached $4,526.20, up 2.53%, while Brent crude rose 1.07% to $96.24 a barrel amid heightened Middle East tensions following US strikes on Iran and renewed Israeli threats. 

US Vice President JD Vance also called for rate cuts on Thursday, a position at odds with recent signals from new Fed Chair Kevin Warsh favoring tighter policy.

Shifting Fed rate expectations are currently a dominant driver of crypto price action, linking Bitcoin's performance closely to macro data. Friday's jobs report is likely to be the next major catalyst for both crypto and traditional markets.

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