Bitcoin rallies as rate-hike bets ease

Bitcoin rallied from around $77,000 to above $80,000 on Thursday and briefly approached $82,000. Ether regained the $2,500 area as US equities and crypto-linked stocks also rose, according to the following morning's market report.

Federal Reserve governor Christopher Waller said he could support leaving September rates unchanged if the inflation data continued improving. Market pricing for a quarter-point increase fell from roughly 63 percent to around 50 percent, while Treasury yields and the dollar eased.

Strategy shares gained 17.6 percent, Robinhood 16.3 percent and Coinbase 10.1 percent. More than $400 million in crypto shorts were liquidated over 24 hours, amplifying the move as positions were forcibly closed.

The rally showed how quickly a change in rate expectations can reach crypto. Part of its strength came from traders exiting bearish bets, adding speed without proving lasting demand.