Fed hints crush Bitcoin short bets 🏛️

So much for Red September—Bitcoin's bounce to $81,000 saw $415 million in shorts liquidated as Fed Governor Christopher Waller hinted at a pause in rate hikes.

Author

Stephen Graves
September 03, 2026

đź“ť What you need to know

Bitcoin surged to highs above $81,000 Thursday, liquidating over $415 million in short positions.

The immediate catalyst was remarks from Fed Governor Christopher Waller, who signaled he'd be "inclined to support" holding the Fed's benchmark interest rate at its current level if upcoming inflation data keeps improving. That marked a sharp reversal from Fed Chair Kevin Warsh’s hawkish Jackson Hole keynote last week, which knocked Bitcoin down to lows under $77,000.

All eyes now turn to the Bureau of Labor Statistics’ August jobs report published Friday morning, the last major economic release before the Fed's September 15-16 meeting.

Bitcoin Pumps as Fed Signals Rate Pause, $415 Million in Shorts Get Rekt

Stocks and Bitcoin rallied together after Fed Governor Christopher Waller said he could back holding rates steady.

Bitcoin · BTCSeptember 3, 2026
$81,078
â–˛ 4.9% past 24 hours
View live price

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đź“Š Myriad Insight of the Day

Fed Decision in September?
No Change 59%Any hike 43%1% Any cut
   
Why it matters
Fed Governor Christopher Waller said Thursday he'd be "inclined to support" holding rates steady if inflation keeps improving, sending CME FedWatch hike odds from 63.2% to 50.4% overnight. Myriad has moved in sympathy—No Change jumped to 59% (up ~16 points on the day) while the 25 bps hike bucket collapsed to 42%. Bitcoin punched back above $80K; $415 million in shorts were liquidated. August jobs report lands Friday.
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