bitcoin ·
Bitcoin climbs above $81,000, majors rally ahead of Fed decision Wednesday
Bitcoin ascended past $81,000, accompanied by a rally across major cryptocurrencies preceding the Federal Reserve's rate announcement.
HYPE spearheaded the gains among major tokens, increasing by nearly 6% to slightly exceed $81, while ZEC appreciated by 5%, maintaining a value near $1,300.
Other notable movements included DOGE gaining 4%, and BNB and SOL each rising roughly 3%; BNB settled just under $760, and SOL surpassed $102. Ether saw a 2% increase, reaching approximately $2,360, and XRP climbed a comparable 3% to $1.32.
Data from CoinDesk indicated that TRX lagged this upward trend with a gain of approximately 1%. This market sentiment contrasts with Monday, when selling pressure affected nearly every major token, causing Bitcoin to fall below $80,000 for the first time in over a week.
This rebound occurred subsequent to a Tuesday statement from Galaxy, which advised that the present moment is opportune for accumulating bitcoin. Alex Thorn, the firm's head of firmwide research, asserted that the bear market probably concluded in June, when Bitcoin traded beneath $58,000.
The critical determinant for market participants arrives later on Wednesday. Traders are anticipating Fed Chair Kevin Warsh's press conference, specifically seeking any indication of a December rate increase. Such an action would elevate the cost of borrowing, typically leading to capital withdrawal from more speculative assets such as crypto.
Why it matters
Market movements like this signal investor sentiment ahead of critical monetary policy announcements. The Fed's stance on interest rates directly impacts the risk appetite within DeFi and L2 ecosystems. Traders are keenly watching for signals that could influence capital flows into crypto assets.
