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– Bitcoin has returned to the $80,000 mark, trading around $80,270 with a gain of nearly 3% over the past 24 hours, while XRP, Ethereum, and BNB rose amid a broad rally in the stock market.

Federal Reserve Board member Christopher Waller hinted on Thursday that he might support keeping rates at current levels, which reduced the probability of a rate hike in September to 50.4% from 63.2% the day before, according to CME FedWatch data.

According to CoinGlass, the volume of liquidations in the cryptocurrency market exceeded $500 million over the past 24 hours, with more than $415 million coming from short sellers who were forced to cover their positions as prices rose.

The cryptocurrency marketincluding Bitcoin and altcoins such as XRP, Ethereum, and BNBis on the rise thanks to bullish momentum from the U.S. stock market, which was likely triggered by recent statements from the Federal Reserve and led to losses for short sellers.

On Thursday, Bitcoin once again broke through the $80,000 level, trading around $80,270 and posting a gain of nearly 3% over the past 24 hours. Ethereum is approaching the $2,500 mark, having gained 2.2% today, while XRP has risen by as much as 6% over the past 24 hours. This surge triggered short liquidations totaling at least $327 million in the last hour alone and more than $415 million over the past 24 hours.

Myriad: What will be the next move for Bitcoins price? Click to make your prediction.

The catalyst appears to have been comments by Federal Reserve Board member Christopher Waller, who, in a prepared statement during a Reuters NEXT Newsmaker interview, said he would be be inclined to support keeping the Feds benchmark interest rate at its current level if upcoming inflation data continues to improve.

Traders caught the hint. The probability of a rate hike at the Feds September 1516 meeting fell to 50.4% from 63.2% the previous day, according to the CME FedWatch toola market indicator that assesses the probability of Fed action based on futures prices. The yield on 10-year Treasury bondswhich serves as a benchmark for borrowing costs in the economy and had reached its highest level since November 2023 the previous dayfell to about 4.73% . , detected_source_language : EN

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This is a sharp reversal compared to the situation a week ago. Fed Chair Kevin Warshs hawkish speech at the Jackson Hole forum sent the price of Bitcoin plummeting to $76,877 and raised the probability of a rate hike to 56% . Thursdays rebound brought Bitcoin back to a level it had testedand failed to holdseveral times this year.

Stocks moved in the same direction. The Dow Jones Industrial Average rose 453 points, or 0.9% , while the S&P 500 and Nasdaq each gained nearly 1% . Nvidia bolstered the tech sector after confirming a deal worth about $13 billion to acquire the Hugging Face artificial intelligence model platform, while Snowflakes stock soared following the release of an earnings report that beat expectations.

An impressive day for NVIDIA and @huggingface.

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The rate hike will be the Feds first decision since July 2023, when it raised the benchmark rate to a 22-year high of 5.255.50% to combat post-pandemic inflation.

Higher interest rates boost returns on cash and bonds, drawing capital away from riskier investments such as stocks and cryptocurrencies, and typically strengthen the dollar, which puts pressure on priced in dollars, such as Bitcoin. Keeping rates at their current level relieves this pressure, which is why traders view Wallers comments as good news for risky assets rather than a reason to sell.

The cryptocurrency rally has a specific character: sellers who opened short positions are being forced out of the market, rather than simply seeing an influx of new buyers. Data from CoinGlass shows that over the past 24 hours, the cryptocurrency market has seen liquidations totaling more than $500 millionthese are positions that the exchange forcibly closes when a trader can no longer cover losses, and $416 million of that total came from short positions opened in anticipation of a price drop, compared to just $92 million from long positions. Over the past day, liquidations have affected more than 119,000 traders.

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