Fed Rate Decision Looms as Bitcoin Eyes New Heights Above $70,000

Bitcoin has made a sharp recovery from its prolonged slump near two-year lows around $60,000, climbing back above $70,000 in late August. The largest cryptocurrency had fallen roughly 50% from its October 2025 peak of over $126,000.

Analysts say the key question is whether Bitcoin can maintain momentum with traders assigning an 85% probability of a rate hike on Wednesday after hot inflation data and with long-end bond yields approaching 5%, increasing competition for capital.

Matthew Dibb, chief operating officer of Singapore-based crypto investment manager Stack Funds, said Bitcoin had been oversold for some time. Options Traders Lean Bullish according to Sean Dawson, head of research at Derive.xyz, who attributed the improved mood to a broader rotation back into crypto after a major SpaceX IPO drew capital out of the market.