Bitcoin (BTC) extended its rally to over 4% during early US trading, climbing to $80,400. The primary catalyst appears to be a shift in market sentiment regarding interest rate hikes, following Federal Reserve Governor Chris Waller's remarks indicating a preference to keep monetary policy unchanged this month.

The digital asset's sharp upward move reflects growing investor confidence that the central bank may hold off on tightening, a development that has sparked renewed risk appetite across cryptocurrency markets.

With Waller's dovish stance, traders are now recalibrating expectations, suggesting that immediate rate increases are less likely, which has bolstered Bitcoin's appeal as a speculative and inflation-hedging asset in the current economic climate.