Sep 14, 2026

Bitcoin Rebounds Above $70,000 as Fed Rate Decision and Senate Crypto Vote Loom

Bitcoin has rebounded from a prolonged slump, but an upcoming Federal Reserve rate decision this week will test whether that optimism can hold, according to Reuters. The report, citing analysts and options market data, notes that a key Senate vote on crypto legislation could also deliver an unexpected boost.

After trading for months near two-year lows around $60,000, the largest cryptocurrency climbed back above $70,000 in late August as Treasury yields briefly pulled back and broader market sentiment improved. The move marked a sharp reversal for bitcoin, which had fallen roughly 50% from its October 2025 peak above $126,000.

Traders see almost no chance of bitcoin returning to that peak, yet the options market has turned bullish for the first time in a year, according to data from options platform Derive.xyz. Many traders are betting bitcoin could reach $80,000 or higher by December.

That optimism may appear misplaced at first glance. Middle East tensions remain elevated, the odds of the U.S. Senate passing a crypto bill that could support adoption have weakened, and inflation has stayed high, fueling expectations of a Fed rate hike that typically drains liquidity from risk assets.