Cryptocurrency market rebounds following Fed statements

An interest rate Friday, not an ETF. This September 4, Bitcoin returned above $81,000, up around 4% over 24 hours. However, the trigger does not come from the queen of cryptocurrencies herself. Indeed, traders have reduced the odds of a Fed rate hike this month to almost a coin toss, compared to more than 63% at the start of the week according to the CME FedWatch Tool. In fact, the entire market is rising as a unit, but not at the same speed. Zcash is in the lead with a jump of almost 15% in one day, while Bitcoin and Ethereum advance by around 4%.

Waller does more for altcoins than any ETF this Friday

Fed Governor Christopher Waller kicked off the movement by saying he was prepared to support a status quo on rates if price pressures continue to ease.

Bond yields fell as a result, and buyers rushed into risky assets. US spot Bitcoin ETFs recorded around $277 million in provisional inflows on Thursday, after four sessions that alternated inflows and outflows without showing a clear trend.

However, one session is not enough. A real institutional return requires more consistency. The dollar slipped to its lowest level since May, and the yen appreciated about 2% on Thursday, erasing a month of gradual decline.

Zcash wins the prize, the increase benefits everyone

Zcash flies through the session with a gain close to 15% in 24 hours and 20% over the week, after hitting an intraday peak of $979 on Thursday afternoon. The network is also running at full speed on the mining side, profitability and hashrate having reached peaks that same day according to Bitcoin.com.

HYPE (at full ATH) and XRP advance by around 6%. Ethereum, BNB and Dogecoin gain between 4 and 5%, Solana advances by almost 3%, and TRON brings up the rear with just over 1%. The movement remains broad, almost uniform in its direction, but much less in its magnitude.

A photo of the day, not yet a confirmed trend

The picture changes completely over seven days, but as we said, one day of increase is not enough. Bitcoin only gains around 1%, Ethereum and XRP remain close to zero, Solana and TRON lose almost 3%. Friday's session therefore looks more like a one-off catch-up than a market overhaul.

The strength of the yen remains a risk. A stronger currency generally drains liquidity from leveraged trades that fund positions in risky assets. Altcoins directly depend on it. Bitcoin has so far absorbed the movement without giving back its gains. What happens next will depend on one simple thing. ETF flows will need to have several positive sessions in a row to confirm the movement. Otherwise, Friday will remain an isolated day in a market that has remained almost frozen over the week.