Bitcoin's Late Summer Rally Faces Off Against Fed, Congress
Bitcoin's recent rally has caught investors off guard, but its sustainability is now in question. The Federal Reserve's rate decision this week will be a key test of the cryptocurrency's momentum.
After months of trading at two-year lows around $60,000, Bitcoin surged past $70,000 in late August due to surging Treasury yields and improved sentiment.
The 50% drop from its October 2025 peak above $126,000 may have been a sharp turnaround, but many traders are now betting on Bitcoin hitting $80,000 or higher by December.
Despite the optimism, analysts warn that tensions in the Middle East and dimmed hopes for a key crypto bill could weigh on the asset. Inflation has remained elevated, raising expectations of a rate hike, which typically sucks liquidity out of risk assets.