Bitcoin nears $81,000 ahead of Fed rate decision as ZEC climbs 8%
In brief
- Bitcoin rose nearly 2% to just under $81,000 Wednesday, per CoinDesk data.
- Bitcoin's move recovered a weekend slip to nearly $79,000.
- ZEC led major tokens, jumping 8% to about $1,320.
- Galaxy's Alex Thorn said in a note he thinks the bear market ended in June.
- Traders are watching Fed Chair Kevin Warsh for any hint of a December hike.
ZEC leads, the rest of the majors split
ZEC was the standout. It jumped 8% to about $1,320, putting it back above $1,300 after Monday's selloff, according to CoinDesk data as of Wednesday Asian morning hours. HYPE added nearly 5% to about $81, and XRP and DOGE each rose roughly 3%.
The other large caps didn't do much better than bitcoin. Ether gained 2% to just above $2,350 and SOL climbed about 2% to $102 (BNB rose 1%, and TRX lagged with a gain of less than 1%).
Galaxy says it's time to accumulate
The bounce came a day after Galaxy told investors that now is the time to accumulate bitcoin. CoinDesk reported the timing; it didn't say the note drove the move.
“We think the bear market ended in June and that bitcoin is in the accumulation phase that has preceded every prior advance,” Alex Thorn, head of firmwide research at Galaxy, said in the note.
Thorn said the bottom likely came in June, when bitcoin traded under $58,000. He pointed to bitcoin's move back above its 50-week moving average (a gauge traders use to judge the longer-term trend), along with lighter selling pressure and rising U.S. debt.
That's Galaxy's read, not a settled fact. CoinDesk called it a confident call for a market that has struggled to hold $80,000.
All eyes on Warsh
The Fed's rate decision was due later on Wednesday, and traders were set to listen to Fed Chair Kevin Warsh's press conference for any hint of a December rate hike.
Why does that matter for crypto?
A hike would make borrowing more expensive, and it tends to pull money out of riskier assets like crypto, CoinDesk noted. That's what traders are watching for. It isn't a forecast, and nothing in Wednesday's moves settles it either way.
All prices cited here come from CoinDesk data as of Wednesday Asian morning hours and they've likely moved since.
Frequently asked questions
Why do traders care about a possible Fed rate hike for crypto?
A rate hike would make borrowing more expensive and tends to pull money out of riskier assets such as crypto, according to CoinDesk. Traders were watching Fed Chair Kevin Warsh's press conference for any hint of a December hike.
Why does Galaxy think the bitcoin bear market is over?
Galaxy's Alex Thorn said the bottom likely came in June, when bitcoin traded under $58,000. He cited bitcoin's move back above its 50-week moving average, lighter selling pressure and rising U.S. debt. That's Galaxy's view, and CoinDesk called it a confident call for a market that has struggled to hold $80,000.
