Bitcoin Magazine

Bitcoin Again Flirts With $81,000 Ahead of Fed’s Jackson Hole Meeting

Bitcoin again closed in on the $81,000 mark on Thursday before dropping again as its stellar week continued. 

The leading cryptocurrency was recently trading for $80,236 after notching as high as $80,793 earlier in the day in New York. 

Bitcoin is now up more than 2% over the past day after gaining 10% in a week. The coin’s rise comes ahead of Federal Reserve Chair Kevin Warsh’s keynote on Friday where he is expected to talk about digital payments — including crypto. 

The Federal Reserve Bank of Kansas City will hold the annual event at Jackson Hole, Wyoming, where central bankers, Federal Reserve officials, policymakers and academics will gather to discuss “Financial Innovation: Implications for Payments and Policy.”

According to the Federal Reserve Bank of Kansas City website, this year’s event will touch on how “recent years have seen a dramatic increase in innovation in financial intermediation and payments,” including new technologies such as “cryptocurrencies and stablecoins.” 

It will be Warsh’s first major speech as chairman of the Federal Reserve. Warsh, who has made pro-Bitcoin statements in the past, has been reluctant to lower interest rates; President Donald Trump, who nominated Warsh, has since last year pushed for borrowing costs to come down. 

Bitcoin in the past has done well in a low interest rate environment. 

Bitcoin’s run started last week when it sustained its biggest run in years following positive regulatory news and an announcement from the U.S. Treasury. 

But recent positive regulatory news has helped the coin. While a vote on the long-awaited crypto Clarity Act has been delayed until September, President Donald Trump last week said that the bill was a “very, very powerful” piece of legislation, and urged lawmakers to get it over the line. 

The proposed law will establish a framework for distinguishing between digital assets that are securities, commodities or payment stablecoins — legislation that the crypto industry has long called for. 

And U.S. Treasury Secretary Scott Bessent also last week announced the department would double the size of its long-dated bond buybacks. 

The news sent yields down lower; lower long-term yields reduces the opportunity cost of holding non-yielding assets like bitcoin and gold, and generally supports risk-on sentiment. 

This post Bitcoin Again Flirts With $81,000 Ahead of Fed’s Jackson Hole Meeting first appeared on Bitcoin Magazine and is written by Mathew Di Salvo.

Source: BitcoinMagazine