Fed Governor Waller just reignited the bitcoin debasement trade: Chart of the Day

Bitcoin is back at the Rubicon . Fed governor Christopher Waller just gave the bulls another reason to cross it.

Bitcoin ( BTC-USD ) surged over 5% Thursday to roughly $81,000, putting it back within striking distance of the resistance that has capped it since February.

The latest charge began around 8:30 a.m. ET, when Waller opened the door to leaving interest rates unchanged at this month's meeting if inflation continues to cool.

Index futures and Treasurys climbed around the same time, while yields and the dollar fell. The odds of a September rate hike dropped to roughly 52% from 63% a day earlier, according to fed funds futures. The dollar posted its biggest drop since Aug. 19.

That was the day the bitcoin debasement trade took off after Treasury Secretary Scott Bessent doubled planned buybacks of some longer-dated Treasurys. Bitcoin, gold, and bonds surged as the dollar fell that day as well.

Recent inflation data finally shows "some signs of disinflation," Waller said. If the improvement continues, he said he would support holding rates steady. A hot August inflation report could still put a hike back on the table.

In case the message wasn't clear enough, Waller loosened up during the Q&A.

"I'm going to paraphrase John Lennon here," he said. "Give disinflation a chance."

Strategy ( MSTR ) soared 18%, its best day in nearly seven months. Robinhood ( HOOD ) jumped 16% for its biggest gain in over a year, while Coinbase ( COIN ) climbed nearly 10%, its best day in six months.

And the enthusiasm quickly escaped crypto.

Palantir ( PLTR ) rallied nearly 8%, while the ARK Innovation ETF ( ARKK ) gained 4.5%, extending the comeback in some of Wall Street's riskiest trades .

Meanwhile, Elon Musk had a great day. SpaceX ( SPCX ) and Tesla ( TSLA ) each gained more than 5%, collectively adding nearly $200 billion in market capitalization .

But this wasn't a space rally. Most other space stocks lagged far behind SpaceX, putting the two Musk companies squarely in the day's broader rush into high-beta names.

The iShares Expanded Tech-Software Sector ETF ( IGV ) gained over 3% while semiconductor stocks were roughly flat. Company news played a role on both sides, with Snowflake ( SNOW ) soaring nearly 17% after earnings and Broadcom ( AVGO ) falling about 3% and weighing on chips.

For all those fireworks, bitcoin still has work to do.

A sustained move above roughly $83,000 would finally clear the range that has contained it since February. Hardika Singh, who works with Fundstrat's Tom Lee, recently offered another sign to watch if that happens.