Bitcoin has rebounded strongly, regaining the $80,000 level after three days. As of 4:30 a.m. on Sept. 4, Bitcoin (BTC) was up 5.53 percent on the day at $81,437 on Coin360. Ethereum (ETH) rose 5.27 percent to $2,511, and Ripple (XRP) jumped 9.19 percent to $1.4672.

Solana (SOL) gained 6.12 percent to $105.25, recovering the $100 level, and Binance Coin (BNB) rose 5.52 percent. Dogecoin (DOGE) added 10.12 percent and Zcash (ZEC) surged 19.63 percent. BTC dominance held at 59.49 percent.

The direct catalyst for the rebound was easing expectations of a rate hike. Buying flowed into risk assets broadly as the probability of a September rate hike, which had jumped to 60 percent after hawkish Jackson Hole remarks by Fed Chair Kevin Warsh, moved back down. Support also came from the ISM services PMI released the previous day, which came in at 55.4, above the forecast of 54.3, confirming expansion in the U.S. economy. Around $86 million in short positions were liquidated in about 1 hour as Bitcoin recovered $80,000.

Markets are watching whether this rise is an extension of last month’s 20 percent rally or the start of a new trend. James Butterfill (제임스 버터필), head of research at CoinShares, said, "The recent Bitcoin rally is being driven by macroeconomic variables rather than crypto-specific factors."

Blue Macellari (블루 마셀라리), head of digital assets at T. Rowe Price, pointed to the re-emergence of the "debasement trade" driven by an expansion of the Treasury’s long-term bond buybacks as the key force. With U.S. government debt at $40 trillion and 30-year Treasury yields rising to their highest level since 2007, the appeal of Bitcoin as a scarce asset is being reassessed, it said.

Technically, the key is whether Bitcoin can break back above $81,455, which was resistance on Aug. 25. Analysis suggests that a close above that level could open the way to the May peak of $82,814 and then a further rise into the $85,000 to $90,000 range. Caution over higher volatility remains, as September is seasonally a weak period for Bitcoin and a Senate procedural vote on the CLARITY Act on the 15th and an FOMC decision on the 16th are scheduled in succession.