Bitcoin punched through $86,500 on Tuesday, breaking above the resistance that had constrained its rally through most of September. The cryptocurrency was trading near $86,559, up 12.2% over the past week, with total crypto market capitalization climbing above $3 trillion.
The move reflects a broader risk-on sentiment on Wall Street. The Nasdaq Composite touched a fresh intraday record Tuesday and closed at record levels Monday, gaining 2.26% for its best day since June. Chipmakers led the advance, with Intel jumping 12% and AMD gaining about 10% to cross a $1 trillion market cap. The sector extended its rally into Tuesday, marking its longest winning stretch since April.
Oil markets moved lower on reports that Iran offered to reopen the Strait of Hormuz within days if Washington eases pressure. Brent crude briefly slipped below $98 a barrel and WTI fell under $93, their lowest since September 8. President Trump told the U.N. General Assembly he expects a deal with Iran following November's midterms, while Saudi Arabia works to restart its East-West pipeline by the weekend.
The Federal Reserve raised its benchmark rate by 25 basis points to 3.75%-4% on September 16 in a unanimous 12-0 vote, its first hike since 2023. The move came after hot inflation data: the Producer Price Index accelerated to 5.4% annually in August, with gasoline driving a third of that month's CPI gain.
Despite the rate increase, the Fed resumed regular purchases of short-term Treasury bills in December 2025 and has continued doing so to keep bank reserves ample. The Fed's bond holdings sit near $6.7 trillion, still well below the $9 trillion peak of 2022 but no longer shrinking.
On technical grounds, Bitcoin cleared the zone between $79,673 and $84,144 and is now testing a trajectory toward $90,000. The cryptocurrency recently formed a golden cross, a pattern recognized as bullish when the 50-day average price crosses above the 200-day average. Fibonacci extensions put the next resistance targets at $90,763 and $95,074. Support zones remain at $79,673, then $75,436 and $73,617 from the summer.
The Crypto Fear & Greed Index sits at 79, deep in greed territory, while the Altcoin Season Index stands at 49, indicating Bitcoin still leads as altcoins begin to move. XRP climbed to $1.57, Solana gained 18.2% over the week, and Zcash extended its multi-month rally to $1,551, up 36.7% over seven days. Of the top 100 coins, 97 are reporting positive performance over the last seven days.
The Federal Reserve's next policy meeting is scheduled for October 27-28, when markets will learn whether September's hike was a one-off response or the first of several planned this year. The Fed's median 2026 projection puts the federal funds rate at 4.1% by year-end.
