Bitcoin Approaches $81,000 as Traders Await Fed Decision; ZEC Rallies 8%

Preface

Cryptocurrency markets moved higher ahead of the Federal Reserve’s rate decision, with Bitcoin recovering from its weekend decline and several major tokens posting gains. Bitcoin rose nearly 2% to just under $81,000 during Wednesday’s Asian morning hours, as traders assessed the outlook for interest rates and risk assets. ZEC led the largest cryptocurrencies, jumping 8% to about $1,320. Alongside the market rebound, Galaxy offered an optimistic assessment of Bitcoin’s cycle, saying the bear market likely ended in June and that the asset had entered an accumulation phase. That view contrasts with the caution implied by Bitcoin’s recent difficulty holding above $80,000. The key questions for traders are whether the Fed signals a December rate increase and whether Bitcoin can sustain its recovery.

Lazy bag

Bitcoin climbed nearly 2% to just under $81,000, recovering from a weekend dip to nearly $79,000 as markets awaited the Federal Reserve’s decision. ZEC gained 8% to about $1,320, while other major cryptocurrencies also advanced. Galaxy’s Alex Thorn said Bitcoin’s bear market likely ended in June, when the price traded under $58,000, and characterized current conditions as an accumulation phase. Traders are watching Fed Chair Kevin Warsh for clues about a December rate hike. A daily close above $82,500 could signal that Bitcoin’s recovery is gaining momentum, though the market has recently struggled to hold $80,000. The rally is unfolding against both a potential shift in Bitcoin’s market cycle and uncertainty about monetary policy.

Main Body

Bitcoin rose nearly 2% to just under $81,000 during Wednesday’s Asian morning hours, reversing much of its weekend decline. The cryptocurrency had slipped to nearly $79,000 before recovering as traders positioned themselves ahead of the Federal Reserve’s rate decision later in the day. The rebound placed Bitcoin close to the $81,000 level, but it did not by itself resolve concerns about the asset’s ability to maintain higher prices. The market’s next moves may depend on how investors interpret the Fed’s decision and the accompanying comments from its chair.

The gains extended across much of the cryptocurrency market. ZEC led the major tokens, 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, while SOL climbed about 2% to $102. BNB advanced 1%, and TRX lagged, gaining less than 1%. These figures, reported in CoinDesk data, show that the rebound was broad but varied in strength from one asset to another.

Bitcoin’s price action followed a market assessment from Galaxy, which told investors that it believed the current period was a time to accumulate Bitcoin. Alex Thorn, Galaxy’s head of firmwide research, said the firm thought the bear market ended in June and that Bitcoin was in an accumulation phase that had preceded every prior advance. The statement presents a constructive interpretation of recent market conditions, but it is an analyst’s view rather than a guarantee of future performance.

Thorn identified June as the likely point at which Bitcoin reached its bottom, noting that it traded under $58,000 at that time. Since then, the price has recovered, and Galaxy’s analysis points to several indicators that the firm considers supportive of its view. One is Bitcoin’s return above its 50-week moving average. This measure is calculated from the asset’s last 50 weekly closes and is used by traders to assess the longer-term trend. A move above the average can be interpreted as a sign that price momentum has improved, although it does not establish that a lasting recovery is certain.

Galaxy also cited lighter selling pressure and rising U.S. debt as part of its reasoning. The firm’s interpretation links these market and economic conditions to the possibility that Bitcoin has moved from a decline into a period of accumulation. In this context, accumulation describes a phase in which investors may gradually build positions before a potential advance. The idea is based on historical patterns, as Thorn said similar phases preceded prior advances, but past market behavior cannot determine how prices will perform in the future.

The confident outlook is notable because Bitcoin has struggled to hold $80,000. A recovery to just under $81,000 marks a meaningful improvement from the weekend’s decline to nearly $79,000, yet it leaves traders watching whether the market can establish stronger support. According to the market outlook described in the source, a daily Bitcoin close above $82,500 could indicate that the recovery is gaining momentum. That level is a potential signal, not a confirmed turning point: price direction can change, and one close would not remove broader economic or market risks.

Monetary policy is an immediate focus. Traders are expected to listen to Fed Chair Kevin Warsh’s press conference for any indication of a December rate hike. The Federal Reserve’s decision and its communications can shape expectations for borrowing costs, liquidity and investor appetite for risk. If the central bank signals that rates may rise in December, investors may reassess exposure to assets that are considered riskier, including cryptocurrencies.

A rate increase would make borrowing more expensive and tends to pull money out of riskier assets like crypto. That possibility helps explain why traders are paying close attention to the press conference, not just the rate decision itself. Even if the Fed does not raise rates immediately, comments about future policy could influence market expectations. Conversely, a less restrictive outlook could ease some concerns about financial conditions, though the source does not establish that such a response would necessarily lead to further crypto gains.

The combination of a broad market bounce, Galaxy’s accumulation thesis and uncertainty about a possible December rate increase leaves investors weighing competing signals. Bitcoin’s recovery and its position above the 50-week moving average support the constructive case outlined by Galaxy. At the same time, the recent struggle to hold $80,000 and the potential effect of higher borrowing costs underline why the outlook remains uncertain. Traders will be watching both price levels and policy guidance to judge whether the latest advance is durable.

In practical terms, the market’s near-term attention is divided between two developments: the Federal Reserve’s communication and Bitcoin’s ability to continue recovering. The Fed’s signals may affect sentiment across risk assets, while Bitcoin’s daily close relative to $82,500 may offer traders one measure of whether upward momentum is strengthening. Neither factor provides certainty on its own. The reported price movements describe current market conditions, while Galaxy’s assessment represents one research view of where Bitcoin may sit in its broader cycle.

Overall, the session was characterized by a rebound in Bitcoin and gains across major cryptocurrencies, led by ZEC, ahead of a consequential policy announcement. Whether this marks the start of a more sustained advance depends on how the market responds to the Fed and whether Bitcoin can build on its recovery. The source also includes a disclosure that CoinDesk is part of Bullish (NYSE:BLSH), an institutionally focused global digital asset platform that provides market infrastructure and information services. Bullish owns and invests in digital asset businesses and digital assets, and CoinDesk employees, including journalists, may receive Bullish equity-based compensation.

Key Insights Table