Fed Decision in Focus as Bitcoin Trades Near $81K and ZEC Surges 8%

Bitcoin rose nearly 2% to trade just below $81,000 during Asian hours on Wednesday, recovering from its weekend decline toward $79,000 as investors awaited the Federal Reserve’s interest rate decision. Major altcoins posted stronger gains than BTC, while technology stocks extended their rally.

Zcash (ZEC) led the gains among major cryptocurrencies, climbing 8% to approximately $1,320 and moving back above $1,300 following Monday’s sell-off. Hyperliquid’s HYPE token advanced almost 5% to around $81. XRP and Dogecoin (DOGE) each gained roughly 3%, while Ethereum increased 2% to just above $2,350. Solana (SOL) rose about 2% to $102, and BNB added 1%. TRON (TRX) lagged the market, recording a gain of less than 1%, according to CoinDesk data.

The recovery came after Galaxy advised investors that the current market environment could provide an opportunity to accumulate Bitcoin.

“We think the bear market ended in June and that bitcoin is in the accumulation phase that has preceded every prior advance,” Alex Thorn, the firm’s head of firmwide research, wrote in an investor note.

Thorn believes Bitcoin likely reached its bottom in June, when its price fell below $58,000. He pointed to BTC’s return above its 50-week moving average, a technical indicator that tracks the average of its closing prices over the previous 50 weeks and is commonly used to evaluate longer-term market trends.

He also cited easing selling pressure and mounting U.S. government debt as factors supporting his bullish outlook. However, Bitcoin’s continued struggle to hold above $80,000 suggests that the recovery remains uncertain.

Investors are now watching the Federal Reserve’s policy announcement and Chair Kevin Warsh’s subsequent press conference for signals about the possibility of another rate increase in December.

Higher interest rates typically raise borrowing costs and can reduce demand for riskier investments such as cryptocurrencies. If the Fed signals further tightening, digital assets could face additional pressure as investors reassess their exposure to volatile markets.