Bitcoin's Q3 Surge Hits Volatility Wall Ahead of Fed Decision

Bitcoin's quarterly performance is its best in nine years, with gains exceeding 40% so far in Q3. This surpasses the average quarterly return since 2013, which has been just 8.6%. The price action has been volatile, however, with a drop to one-week lows of $82,557 after reaching a weekly close at $84,450.

The market's expectations for a Federal Reserve interest-rate hike in October have increased to 70% odds, according to the CME Group's FedWatch Tool. This has put downward pressure on the price of Bitcoin, with some analysts warning that if the support level at $82,500 is broken, it could lead to a retraction back into the $60,000-$80,000 range.

Rekt Capital, an analyst, notes that the current situation bears similarities to the 2022 bear market recovery pattern. In order for history to repeat itself, the price of Bitcoin would need to retain the support level at $82,500 and build a 'reaccumulation range' above it.