Bitcoin Breaks Above $86K Amid Risk-On Mood on Wall Street
Bitcoin's price broke above $86,500 on Tuesday, pushing the total crypto market capitalization above $3 trillion. This move comes as the Crypto Fear & Greed Index reads 79, solidly in 'greed' territory, and the Altcoin Season Index is at 49, indicating Bitcoin still leads even as altcoins gain momentum.
The breakout aligns with a broader risk-on mood on Wall Street, where the Nasdaq Composite closed at a record Monday, up 2.26% for its best day since June. Chipmakers Intel and AMD saw significant gains, jumping 12% and 10%, respectively, and crossing a $1 trillion market cap.
The Federal Reserve's decision to raise its benchmark rate by 25 basis points to 3.75%-4% on September 16 is seen as a factor in the rising oil prices, but reports that Iran offered to reopen the Strait of Hormuz within days if Washington eases pressure led to a brief decline in Brent crude and WTI.
On the chart, Bitcoin's daily setup backs up the rally. Price cleared the zone between $79,673 and $84,144 and is now testing a trajectory to around $90K. The Fed's bond holdings sit near $6.7 trillion, still well below the $9 trillion peak of 2022 but no longer shrinking.