Bitcoin Nears $84,000 as Fed’s Williams Rules Out 2027 Rate Hikes

Bitcoin advanced toward $84,000 during Wednesday’s Asian trading session as New York Fed President John Williams indicated that further interest rate increases may not be necessary in 2027. His comments weakened the U.S. dollar and supported a rebound in Asian equities, while investors awaited Thursday’s U.S. inflation report.

Bitcoin gained 1.5%, trading just below $83,900 in the early Asian hours. Among major cryptocurrencies, ZEC led the rally, climbing nearly 7% to around $1,270. Solana (SOL) and Dogecoin (DOGE) each rose 2.5%, while Ether (ETH) added 2% to approximately $2,520. XRP, BNB and HYPE advanced between 1% and 2%, whereas TRON (TRX) posted a smaller gain of less than 1%, according to CoinDesk data.

Williams noted that another rate increase could still be appropriate later this year. Nevertheless, his remarks helped the S&P 500 recover part of Tuesday’s losses. S&P 500 futures rose 0.2%, with the benchmark index trading near the record high reached last week.

Asian semiconductor stocks also rebounded, with Samsung Electronics and SK Hynix ending a five-session losing streak. The earlier decline had triggered liquidations of leveraged bets on chip stocks offered through cryptocurrency exchanges. Meanwhile, MSCI’s Asia-Pacific equity index climbed 0.7%, recovering after two consecutive sessions of losses had pushed it to its lowest closing level since August.

Investors are also watching upcoming earnings from major semiconductor companies. Chipmaking equipment manufacturer ASML is scheduled to report on Wednesday, followed by Taiwan Semiconductor Manufacturing Co. on Thursday.

Oil prices continued to rise amid renewed attacks in the Middle East, raising concerns about the recovery of energy shipments through the Persian Gulf. Brent crude gained 0.7% to approximately $106 per barrel, while U.S. crude futures extended their advance for a fifth consecutive session.

Thursday’s U.S. inflation data will provide the next major test for Williams’ outlook on interest rates. If inflation comes in low enough to reduce the likelihood of another rate hike, Bitcoin could gain momentum to challenge the $85,000 level again.