Bitcoin Reclaims $65,000 Ahead of Fed Meeting as Investors Watch Kevin Warsh’s Policy Signals

Bitcoin rose back above the $65,000 level, trading at $65,568, as risk appetite improved ahead of this week’s U.S. Federal Reserve policy meeting. According to ChainCatcher, the rebound coincided with gains in other risk assets, including U.S. technology stocks. The report said analysts attributed the move to renewed flows into risk assets and expectations that easing tensions in the Middle East could lead to lower oil prices. Lower energy-price pressure is seen as potentially reducing inflation concerns and, in turn, lowering the likelihood of additional hawkish messaging from the Fed. Markets broadly expect the Fed to keep interest rates unchanged, but attention is focused on comments about the future policy path from incoming Fed Chair Kevin Warsh, who will chair the meeting for the first time. The report said a more dovish tone could further lift risk sentiment, while emphasis on persistent inflation and higher rates for longer could pressure bitcoin and other risk assets.