Bitcoin climbed toward the $81,000 mark on Wednesday morning in Asia, rising nearly 2% as major cryptocurrencies broadly advanced, with most posting larger gains than Bitcoin itself. The move recovered part of the ground lost over the weekend, when Bitcoin briefly fell to around $79,000. Traders are now waiting for the Federal Reserve to announce its interest rate decision later in the day.
According to market data, ZEC led the gains among major cryptocurrencies, jumping 8% to about $1,320 and reclaiming the $1,300 level after a sell-off on Monday. HYPE rose nearly 5% to roughly $81. XRP and DOGE each gained about 3%, Ethereum added 2% to slightly above $2,350, and SOL advanced about 2% to $102. BNB rose 1%, while TRX lagged with a gain of less than 1%.
The rebound followed digital asset financial services firm Galaxy telling investors that now is the time to add to Bitcoin positions. Alex Thorn, the firm's head of company-wide research, said in a report: "We believe the Bitcoin bear market ended in June and that we are now in an accumulation phase. Every previous rally has been preceded by a similar phase."
Thorn believes Bitcoin most likely bottomed in June, when it traded below $58,000 at one point. He noted that Bitcoin has reclaimed its 50-week moving average, while selling pressure in the market has eased and U.S. debt continues to rise. The 50-week moving average is the average of Bitcoin's closing prices over the past 50 weeks, an indicator traders often use to judge the market's long-term trend.
For a market that has recently struggled to hold the $80,000 level, Thorn's assessment appears quite optimistic. Traders will next closely watch the press conference of Federal Reserve Chair Kevin Warsh for any signals about a possible rate hike in December. A rate increase would push up borrowing costs and tends to drive capital away from riskier assets such as cryptocurrencies.
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