Bitcoin approaches $81,000 ahead of Fed's Jackson Hole meeting

Bitcoin approached $81,000 on Thursday before falling again. Bitcoin traded at $80,236 after reaching $80,793 earlier in the day in New York. Bitcoin gained more than 2% over the past day. Bitcoin gained 10% in a week. Federal Reserve Chair Kevin Warsh is expected to discuss digital payments, including crypto, at his keynote on Friday. The Federal Reserve Bank of Kansas City will host the annual event in Jackson Hole, Wyoming. Central bankers, Federal Reserve officials, policymakers and academics will discuss financial innovation and its implications for payments and policy. The event will cover cryptocurrencies and stablecoins. Warsh has made pro-Bitcoin statements in the past. Warsh has been reluctant to lower interest rates. President Donald Trump nominated Warsh and has pushed for lower borrowing costs since last year. Bitcoin has performed well in low interest rate environments in the past. Bitcoin's recent gains followed positive regulatory news and a U.S. Treasury announcement. A vote on the proposed crypto Clarity Act was delayed until September. Trump called the bill a very powerful piece of legislation and urged lawmakers to pass it. The bill would create a framework for classifying digital assets as securities, commodities or payment stablecoins. Treasury Secretary Scott Bessent announced that the department would double the size of its long-dated bond buybacks. The announcement pushed yields lower. Lower long-term yields reduce the opportunity cost of holding non-yielding assets such as bitcoin and gold. Lower yields generally support risk-on sentiment.