Key Points
Bitcoin is rebounding as Treasury yields and the dollar fall, and investors worry less about a September rate increase.
The conflict with Iran could keep oil and inflation high enough to put pressure on Bitcoin again.
Bitcoin (CRYPTO: BTC) is up 4.8% over the past 24 hours as of 2:50 p.m. ET on Thursday, Sept. 3, 2026, after U.S. Treasury yields fell and investors became less worried that the Federal Reserve would raise interest rates this month.
The S&P 500 and Nasdaq Composite were up 1.1% and 1.6%, respectively.
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Lower rate fears are helping Bitcoin rebound
U.S. Federal Reserve Governor Christopher Waller on Thursday said that he would support leaving interest rates unchanged if August inflation data is positive. This led to a drop in the market's expectations for an upcoming rate increase.
Bond yields also slipped slightly from their recent highs. Both of these macro forces tend to favor higher-risk assets like Bitcoin and other cryptocurrencies.
Higher oil prices could bring the pressure back
Earlier this week, we saw the opposite happen. Renewed U.S. strikes against Iran pushed oil prices higher, increasing expectations of a rate hike, bond yields jumped, and Bitcoin dropped.
Image source: Getty Images.
Waller's comments interrupted that pattern, but I wouldn't read too much into one day's move. Oil remains expensive, and a further escalation could bring those inflation fears right back.
The next economic reports matter more than one day's gain
Of course, Bitcoin is often considered a hedge against inflation. That's the narrative, but it doesn't always behave like it, as we've seen this week. It looks more like a high-growth technology stock.
That can make it a frustrating asset to value. Still, I think it's worth adding as a small portion of a well-balanced portfolio.
Johnny Rice has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Bitcoin. The Motley Fool has a disclosure policy.