Live updates: Bitcoin climbs above $81,000 as majors rally ahead of Fed decision

Bitcoin surpassed $81,000 as major cryptocurrencies experienced a rally preceding the Federal Reserve's announcement.

HYPE and ZEC spearheaded the general upward movement, with all leading tokens showing gains before the Federal Reserve's rate call.

Bitcoin increased 2% to just above $81,000 in the Asian morning on Wednesday. This recovery follows its decline below $80,000 on Monday, as traders prepared for the Fed's rate decision later that day.

HYPE led the major tokens, rising nearly 6% to just above $81. ZEC gained 5%, maintaining a value near $1,300. DOGE increased by 4%, while BNB and SOL both saw approximate 3% rises, with BNB trading just under $760 and SOL above $102.

Ether climbed 2% to approximately $2,360, and XRP saw a similar 3% increase, reaching $1.32, according to CoinDesk data. TRX experienced a lesser gain of around 1%.

This trading activity contrasts with Monday, when selling affected almost every major token, causing bitcoin to drop below $80,000 for the first time in over a week.

The current rebound follows a Tuesday statement from Galaxy, which suggested that accumulating bitcoin was opportune. Alex Thorn, who heads the firm’s firmwide research, stated that the bear market probably concluded in June when bitcoin traded below $58,000.

The crucial test arrives later on Wednesday. Traders are awaiting Fed Chair Kevin Warsh's press conference for any indication of a December rate hike. Such a hike would increase borrowing costs and typically draws capital from riskier assets like crypto. Monday demonstrated how swiftly traders divest when discussions about hikes intensify, and Warsh will speak later Wednesday.