Bitcoin Nears $81,000 Ahead of Fed Decision as ZEC Rises

BitcoinBTC+1.62% Bounces Back Near $81,000

Bitcoin has climbed back toward $81,000 after dropping close to $79,000 over the weekend. Traders are watching closely as the U.S. Federal Reserve prepares its latest interest rate decision.

While the price recovery brings fresh energy to the market, digital assets remain sensitive to macroeconomic shifts. Short-term price volatility stays likely around major central bank updates.

Altcoins Rally Led by Zcash Gain

Alternative cryptocurrencies outpaced Bitcoin across the board during Wednesday morning trading hours in Asia. Zcash (ZEC) led the major tokens by jumping 8% to around $1,320, rebounding after Monday's market drop.

Other major tokens also recorded gains. HYPE moved up nearly 5% to trade near $81, while XRP and Dogecoin (DOGEDOGE+2.77%) both rose about 3%.

EthereumETH+1.91% gained 2% to hold above $2,350, and SolanaSOL+1.84% advanced 2% to reach $102. BNB rose 1%, while TRON (TRX) lagged behind with a modest gain of under 1%.

Is the Bear Market Over? Inside Galaxy's Analysis

Market research firm Galaxy recently shared an encouraging note with investors. Alex Thorn, head of firmwide research at Galaxy, stated that the crypto bear market likely ended in June when Bitcoin traded below $58,000.

According to Galaxy, Bitcoin has entered an accumulation phase. Historically, this quiet buying period has taken place right before major market advances.

Thorn pointed to technical signals supporting this view. Bitcoin recently moved back above its 50-week moving average, which traders use to assess long-term trends. He also cited lighter selling pressure and rising U.S. national debt as favorable factors.

Analysts suggest that if buying pressure continues and macro conditions stay supportive, a daily close above $82,500 could confirm upward momentum. However, if interest rates remain high or selling pressure returns, Bitcoin could experience a price pullback instead.

Please note that past performance of digital assets is not a guarantee of future performance. Investors can follow live market movements on Bitkub Market.

Why All Eyes Are on the Federal Reserve

Macroeconomic policy continues to shape crypto sentiment. Market participants are listening closely to Federal Reserve Chair Kevin Warsh for signals regarding potential interest rate hikes in December.

When central banks increase interest rates, borrowing becomes more costly. This often leads investors to move money out of riskier assets, including cryptocurrencies, and into traditional yield options.

Key News Driving the Digital Asset Sector

Beyond market prices, several key stories developed across regulatory, institutional, and technology sectors today.

Coinbase Security Update: Coinbase confirmed customer funds remain completely safe after a third-party vendor exposed user contact information.

U.S. Dollar Strategy: U.S. Treasury Secretary Bessent highlighted digital assets as a tool that could help maintain the dominance of the U.S. dollar globally.

Robinhood Earnings: Robinhood reported a 55% year-over-year decline in crypto revenue, yet still beat Wall Street estimates. The platform also adopted RippleXRP+2.19%'s $2.5 billion RLUSD stablecoin.

Wall Street Onchain Expansion: Janus Henderson and Centrifuge launched a licensed fund bringing the Nasdaq-100 onchain. Meanwhile, tech firms like Intel, IBM, and Oracle voiced concerns over tokenized stock plans from OKX and ICE.

Global Adoption and AI Integration: Brazilian companies utilized stablecoins during election day to hedge against local currency swings. In tech, Bitcoin miners are pivoting to artificial intelligence infrastructure, creating new trading markets for computing power.

Real World Asset Yields: Research shows Real World Asset (RWA) stablecoins backed by private credit are maintaining 5% to 7% yields, offering alternatives as traditional crypto funding rates drop.

Summary for Investors

The crypto market is showing signs of steadying, but broader economic factors like interest rate decisions remain critical drivers. Keeping an eye on both technical indicators and macro news helps investors stay well-informed.