Major cryptocurrencies moved higher on Friday as traders sharply reduced expectations for a Federal Reserve rate hike in September. The market now sees the chances of an increase as roughly a coin flip, although most leading tokens remain little changed over the past week.
Bitcoin climbed back above $81,000 during Asian morning trading on Friday, gaining roughly 4% over 24 hours. The rally followed a shift in interest-rate expectations, with traders now pricing about a 50% chance of a September Fed hike, down from more than 63% earlier in the week, according to the CME FedWatch tool.
The change in rate expectations pushed Treasury yields lower and encouraged investors to add exposure to riskier assets.
Fed Governor Christopher Waller helped drive the repricing after saying he would favor keeping interest rates unchanged if inflation pressures continued to moderate. U.S. Treasuries and gold also maintained gains from the New York trading session.
Zcash Leads the Crypto Rally
Zcash was the strongest performer among major tokens, climbing almost 15% over 24 hours and roughly 20% over seven days. Its recent advance has put it well ahead of most of the broader crypto market.
Hyperliquid’s HYPE gained about 6%, while XRP also advanced nearly 6%. Ether, BNB and dogecoin each rose between 4% and 5%. Solana added close to 3%, while TRON gained just over 1%, making it the weakest performer among the major tokens.
Weekly performance remained considerably less impressive. Bitcoin was up around 1% over seven days, while ether and XRP were close to unchanged. Solana and TRON were both down nearly 3%, according to CoinDesk data.
Bitcoin ETFs Still Lack Consistent Buying
U.S. spot Bitcoin ETFs recorded approximately $277 million in inflows on Thursday based on provisional figures. The result followed four consecutive sessions that alternated between net inflows and outflows.
The inconsistent flow pattern means the funds have yet to establish a sustained buying streak that would indicate stronger institutional demand rather than a temporary rebound.
Broader financial markets also continued to advance. MSCI’s Asia Pacific index gained nearly 1%, while the MSCI All Country World Index posted its third consecutive daily increase.
The U.S. dollar stabilized after falling to its weakest level since May, while an index tracking Asian currencies climbed to levels not seen since October 2024.
Yen Strength Adds to Market Watch
The Japanese yen remained a major focus for Asian traders after strengthening roughly 2% on Thursday, reversing about a month of gradual declines. Expectations for additional Bank of Japan rate hikes increased, while traders also remained alert to the possibility of official intervention to support the currency.
The yen later surrendered part of its advance, trading around 156.35 per dollar after reaching 155.30 in the previous session.
A stronger yen can pressure carry trades, which often provide funding for positions in higher-risk assets. Bitcoin’s ability to hold its gains despite the currency move suggests that investors remain willing to maintain exposure to risk.
ETF flows through the end of the week could provide a clearer signal of whether institutions view the latest shift in rate expectations as a lasting change in market conditions or simply a short-term repricing.
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