Bitcoin Tops $85,000 as Crypto Market Rebounds

The rally is being driven by a mix of policy optimism and market mechanics. Wall Street has focused on a new SEC framework unveiled Sept. 18 that eases the path for tokenized stock trading on blockchain rails, including a five-year exemption for AMM-based onchain trading in tokenized US equities, after the Clarity Act failed in the Senate. At the same time, analysts say a narrow trading range triggered short covering, with Bitfinex describing demand between $77,100 and $80,000 absorbing available supply.

That technical backdrop has turned more constructive. Bitcoin has now closed a week above its 50-week moving average for the first time in 45 weeks, a level some traders view as an important confirmation that a bear-market low is in place. Crypto market open interest stood around $27.3 billion as of Sept. 18, while the Crypto Fear & Greed Index was near 73, close to the “extreme greed” zone.

Still, the rebound faces a macro test. The 10-year US Treasury yield moved back above 5% on Friday, reinforcing competition for capital between risk assets and bonds. Investors will be watching whether yields stay elevated and how the Federal Reserve signals its next move, both of which could decide whether this becomes a durable crypto bull leg or another short-lived bounce.