Bitcoin Reclaims $65,000, but Fed Decision Threatens to Turn Rally into a Trap
Bitcoin has reclaimed the $65,000 threshold as a temporary pause in US-Iran tensions has reignited demand for risk assets. This sudden surge in Bitcoin and the significant rally in Ethereum suggest a brief window of optimism, driven by a momentary stabilization in global geopolitical tensions.
Despite the bullish momentum, market experts warn that this relief rally could be a trap ahead of Wednesday's pivotal Federal Reserve decision. The upcoming Fed meeting remains the ultimate catalyst that could either solidify this recovery or trigger a sharp reversal in the cryptocurrency market.
Bitcoin reclaimed $65,000 on Monday as a pause in US-Iran strikes revived demand for risk assets ahead of a pivotal Federal Reserve meeting. Data shows that the largest cryptocurrency rose about 1% to $65,155, while Ethereum gained 4% to around $1,964, marking its highest level since early June. While the move comes as Washington temporarily eases tensions, the shadow of the Fed looms large; the upcoming decision could quickly turn this relief rally into a liquidity trap for traders caught on the wrong side of the volatility.
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