Bitcoin Defies Rate Hike Fears, Surpasses Yearly Moving Average
Bitcoin has made a significant comeback after posting a low of $75,064 on Wednesday. The price drop followed the Federal Reserve's decision to raise interest rates by 25 basis points.
The recovery from those lows suggested that the pullback from $82K earlier in September was due to the market pricing in the rising odds of a rate hike.
Bitcoin has now surpassed its yearly moving average, which stood at $80,701 at the time of writing. This is a major victory for the bulls, especially given the timing. The CLARITY Act has failed to pass in the Senate, there is an ongoing transition to tightening liquidity conditions due to inflation, and a series of rate hikes is possible in 2027.
According to crypto researcher Bull Theory on X, this rally seems reminiscent of the 2023 market bottom.