Summary
- Bitcoin approached $86,559 on Tuesday, marking a 12.2% increase over the past week after overcoming a resistance level that had held since early September.
- The Crypto Fear & Greed Index currently stands at 79, indicating strong "Greed" sentiment.
- The Nasdaq Composite achieved a new intraday high as semiconductor stocks continued their upward trend.
Bitcoin broke past the $86,500 mark on Tuesday, maintaining its position above a resistance level that had restricted its growth throughout September. This surge has pushed the overall cryptocurrency market capitalization above $3 trillion, with the Crypto Fear & Greed Index at 79, firmly in the "greed" zone, while the Altcoin Season Index is at 49, suggesting Bitcoin remains dominant despite altcoins gaining traction.
This breakout corresponds with a broader positive sentiment on Wall Street. The Nasdaq Composite hit a record on Monday, rising 2.26%—its best performance since June—as AI-related stocks surged. Intel saw a 12% increase, AMD rose about 10% and exceeded a $1 trillion market cap. Semiconductor stocks continued their winning streak into Tuesday, marking their longest consecutive gains since April.
Myriad: Predict Bitcoin's future. Make your prediction here.Tuesday's trading session was relatively stable. The Nasdaq increased by 0.4%, reaching a new intraday peak, while the S&P 500 remained mostly unchanged. Instead, oil prices were the primary focus.
Brent crude briefly dipped below $98 per barrel, and WTI fell under $93, the lowest levels since September 8, following reports that Iran proposed to reopen the Strait of Hormuz soon if the U.S. eases sanctions.
President Donald Trump indicated during the U.N. General Assembly that he anticipates a deal with Iran "right after the election," referring to the upcoming midterms in November, while Saudi Arabia works to resume its East-West pipeline operations by the weekend.
The Federal Reserve increased its benchmark interest rate by 25 basis points to a range of 3.75%-4% on September 16, marking its first hike since 2023, with a unanimous 12-0 vote. This decision was influenced by rising inflation, as the Producer Price Index saw a 5.4% annual increase in August, with gasoline contributing significantly to that month's Consumer Price Index rise.
Despite the rate hike, the Fed has not ceased its purchases of short-term Treasury bills, which resumed in December 2025 and continue to provide liquidity to the banking system. This approach is separate from interest rate policy and helps absorb Treasury supply while facilitating cash flow to risk asset buyers, somewhat counteracting the tightening impact of the rate increase. This situation is unusual: higher rates alongside a Fed balance sheet that is no longer contracting.
The Fed's bond holdings are currently around $6.7 trillion, significantly lower than the $9 trillion peak in 2022, but no longer decreasing.
On the charts, Bitcoin's daily performance supports the ongoing rally. The price has surpassed the range between $79,673 and $84,144 and is now poised to test levels around $90,000.
Bitcoin price chart. Image: TradingviewCurrently, Bitcoin is experiencing a golden cross—a bullish signal recognized by traders that occurs when the 50-day moving average crosses above the 200-day moving average.
If the bullish momentum continues, Fibonacci extensions suggest potential targets at $90,763 and $95,074. However, if Bitcoin fails to maintain the $79,673 level during a pullback, it could drop back to $75,436 and then to $73,617, which are the last significant support levels from the summer.
Sentiment within prediction markets reflects these developments. On Myriad, a platform developed by Decrypt’s parent company Dastan, traders are estimating a 48% probability that Bitcoin will reach $90,000 this month, compared to a 25% chance of hitting $92,500.
Altcoins are also experiencing gains. XRP rose to $1.57, Solana saw an 18.2% increase over the week, and Zcash extended its impressive multi-month growth to $1,551, up 36.7% in seven days. Among the top 100 cryptocurrencies, 97 have shown positive performance over the past week.
The Federal Reserve's next policy meeting is scheduled for October 27-28, when market participants will find out if the rate hike in September was a one-time reaction to an oil shock or the beginning of multiple hikes planned for this year. The median projection for the federal funds rate in 2026 is set at 4.1% by year-end.
Disclaimer
The opinions expressed by the author are for informational purposes only and should not be considered as financial, investment, or other advice.