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Bitcoin jumps above $65,000 as Fed meeting looms

Ethereum also hit about $1,964, but Fed funds futures shifted toward a potential 25-basis-point hike while oil volatility cooled after a US pause on strikes.

Reported · Written up by our desk · Market Structure

Bitcoin rebounded above $65,000 on Monday as a temporary pause in US-Iran strikes revived demand for risk assets ahead of a key Federal Reserve decision. CryptoSlate data showed Bitcoin rose about 1% to $65,155, while Ethereum gained about 4% to around $1,964, its highest level since early June.

The relief came after Washington temporarily halted its strikes on Iran and Tehran said it would suspend attacks as long as the United States did the same. At the same time, Brent crude fell 6.5% to about $90.45 a barrel, trimming some of the geopolitical premium that had been embedded in energy markets.

Even with the geopolitical respite, CryptoSlate said the market faces another potential volatility driver: how the Fed reads the recent energy and inflation developments. Fed funds futures priced roughly a one-in-three chance of a 25-basis-point increase for the Wednesday conclusion of the two-day meeting, versus 16% a week earlier, while about two-thirds of the market still expected the target range to remain at 3.50% to 3.75%.

CryptoSlate also pointed to inflation data and its link to energy prices. The CPI report showed June headline inflation fell 0.4% month over month and annual inflation slowed to 3.5% from 4.2% in May, with core inflation easing to 2.6% from 2.9%, while the energy index dropped 5.7% in June after rising in the prior three months. The article said the Fed is weighing whether last week’s energy shock is temporary or changes the “Fed trade” for crypto and other risk assets.

Latest closeWTI crude $90.47 ▼1.9%|Brent $98.38 ▼2.3%|Bitcoin $65,139.96 ▼0.3%

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