- Bitcoin climbed nearly 2% to just under $81,000 in Asian morning hours on Wednesday, recovering from the weekend’s slip to nearly $79,000. Traders are bracing for the Federal Reserve’s rate decision later in the day.
- Zcash led the majors, jumping 8% to about $1,320 and moving back above $1,300 after Monday’s selloff. HYPE added nearly 5% to about $81, XRP and DOGE rose roughly 3%, ether gained 2% to just above $2,350 and SOL climbed about 2% to $102, according to CoinDesk data.
- The bounce came a day after Galaxy told investors it is time to accumulate bitcoin. “We think the bear market ended in June and that bitcoin is in the accumulation phase that has preceded every prior advance,” said Alex Thorn, head of firmwide research at Galaxy.
- Thorn said the bottom likely came in June, when bitcoin traded under $58,000, pointing to its move back above the 50-week moving average, lighter selling pressure and rising US debt. That is a confident call for a market that has struggled to hold $80,000.
What Happened?
Crypto prices firmed ahead of the Fed decision, with bitcoin reclaiming ground lost over the weekend and most large tokens posting gains. Zcash outperformed after Monday’s selloff, while Tron lagged with a gain of less than 1% and BNB rose 1%. Galaxy’s research note argued that the market has already moved from bear to accumulation, citing technical signals and the US fiscal backdrop.
Why It Matters?
The Fed matters for crypto because higher rates make borrowing more expensive and tend to pull money out of riskier assets. Markets broadly expect a hold today, so the reaction will likely hinge on whether Chair Kevin Warsh leaves the door open to a December hike. Galaxy’s call adds an institutional voice to the bull case, but bitcoin’s repeated failure to hold $80,000 shows that conviction remains thin.
What’s Next?
Traders will listen closely to Warsh’s press conference for any hint of a December hike, which could test the $80,000 level again. A dovish tone could give bitcoin room to extend the rebound and support higher-beta tokens like ZEC and HYPE. Over the longer run, Thorn’s thesis will be tested by whether bitcoin can hold above its 50-week moving average.
Affected Tickers and Coins: BTC, ETH, ZEC, HYPE, SOL, XRP, GLXY
Source: CoinDesk
