Bitcoin Rebounds 1% to $65,155 Amid Fed Rate Decision Uncertainty

Bitcoin rises 1% to $65,155 as geopolitical tensions ease and oil drops. However, upcoming Fed policy signals and inflation data pose significant risks to the relief rally.

Woofun AI reports that Bitcoin increased approximately 1% to $65,155, while Ethereum gained 4% to $1,964, its highest level since early June. This movement coincided with a temporary halt in strikes between Washington and Tehran, causing Brent crude to drop 6.5% to $90.45 per barrel. The Federal Reserve faces a complex inflation backdrop due to recent energy shocks, with median officials projecting a federal funds rate of 3.8% by end-2026. Markets currently price a 77% probability of a rate increase by September. Options traders show reduced demand for short-term downside protection, with one-week implied volatility at 34.3%. The outcome of Wednesday’s Fed decision and Thursday’s economic data will determine if the current rebound sustains or reverses.