Bitcoin Soars Above $86,000 as Fed Rate Hike May Be Peaking

The Federal Reserve raised its federal funds target rate by 25 basis points to 4%, but Bitcoin's price surged above $86,000 in response.

Tom Lee, head of research and Chief Investment Officer at Fundstrat Global Advisors, believes the Fed may have reached the height of its hawkish stance on inflation and interest rates, anticipating a softer tone from officials soon.

The potential shift could increase the appeal of cryptocurrencies like Bitcoin to investors seeking alternatives to traditional assets, especially if upcoming data gives the Fed room to walk back its stance.