Bitcoin Nears $85k as Fed Rate Hopes Lift Crypto Markets

The cryptocurrency market experienced a significant boost this week as Bitcoin's price neared $84,500. The gains were largely driven by reduced expectations for further Federal Reserve rate hikes, which made riskier assets more attractive to investors.

U.S. spot Bitcoin ETFs saw a return of investor interest, with around $2.4 billion in net inflows during the trading week ending September 25. This helped push Bitcoin ETF flows for 2026 back into positive territory.

Citigroup raised its 12-month Bitcoin price target to $113,000 and Ethereum forecast to $3,028, citing stronger crypto activity and renewed ETF inflows.

Ethereum's price gains trailed behind Bitcoin's recovery, with the security incident involving MetaMask's Ethereum validators drawing attention. Regulators also proposed a new framework for crypto custody by investment advisers.

Binance faced scrutiny in Europe as regulators examined whether the exchange had kept serving European customers without proper authorization under the EU's MiCA rules.