Bitcoin Tops $81,000 as Fed Rate Hike Odds Drop, Zcash Surges 15%

Bitcoin climbed above $81,000 during Asian morning hours Friday, gaining roughly 4% over 24 hours as traders sharply reduced their expectations for a Federal Reserve interest rate increase this month.

Market implied odds of a hike fell to nearly a coin-flip, down significantly from earlier in the week, after a Federal Reserve official signaled support for holding rates steady if inflation continues easing. The shift pulled bond yields lower and pushed investors toward riskier assets.

Zcash Leads Broad Crypto Rally

Zcash stood out as the top performer, surging nearly 15% in a single day and extending its weekly gains well beyond the rest of the market. Other major tokens also posted solid gains, though most remained only slightly changed over the past week despite the daily rally.

US spot Bitcoin exchange traded funds recorded notable net inflows on Thursday, though the funds have yet to establish a consistent buying trend following a stretch of mixed daily flows.

Yen Strength and Global Market Trends Add Context

Global equity markets extended recent gains, while the US dollar remained near multi-month lows. The Japanese yen drew significant attention after strengthening sharply, driven by growing expectations of a Bank of Japan rate increase and speculation about potential currency intervention.

Despite the stronger yen typically reducing liquidity available for risk-asset trades, Bitcoin managed to hold onto its gains, with analysts watching whether ETF inflows remain steady in the coming days to confirm a more lasting shift in investor sentiment.