Trading at $86,423 on Tuesday, Bitcoin (BTC) rebounded from a low of under $76,000 just a week prior. According to Tom Lee and Kevin Maloney, CEO of iTrustCapital, the most difficult phase is now behind investors.
Both figures shared their outlook following a United States interest rate increase and the defeat of the CLARITY Act, a crypto-related bill. Neither hurdle managed to halt the leading cryptocurrency’s recovery.
iTrustCapital CEO Says the Crypto Winter Is Over
Maloney oversees iTrustCapital, a retirement account platform that facilitates crypto and equity investments. Speaking in an interview with Paul Barron, he expressed that the prolonged market downturn, commonly referred to as the “crypto winter,” has concluded.
At the time, his organization was holding approximately $350 million in dormant client funds, Maloney noted. He mentioned that “significant portions” of those funds are now being redeployed into investments.
“Bitcoin doesn’t need Clarity Act,” Maloney said in the interview.
Additionally, Maloney highlighted a specific threshold to monitor, stating that a weekly close above $85,000 would place Bitcoin in a strong position.
Tom Lee Says the Fed Cannot Get More Hawkish
Meanwhile, Fundstrat Capital Chief Investment Officer Tom Lee views the recent rate hike as a peak rather than the beginning of a sustained squeeze, a stance he has maintained repeatedly throughout the month.
During his weekly update, Lee drew attention to an upcoming alteration in government inflation metrics scheduled for September 30. He indicated that economists anticipate the adjustment will lower the Personal Consumption Expenditures (PCE) price index—the Federal Reserve‘s preferred inflation metric—from 3.4% down to approximately 3%.
“They can’t get any more hawkish than this,” Tom Lee stated.
Lee further remarked that even an additional 0.25-point rate hike would fail to break the broader economy or the equity market.
Their Remarks Come After Two Setbacks in One Week
On September 15, the CLARITY Act failed to clear a Senate procedural vote, finishing at 50-49 and falling short of the required 60 votes. The legislation aimed to establish which federal regulator would oversee digital assets.
The following day, the Federal Reserve raised its benchmark interest rate by 0.25 percentage points, moving it into a range of 3.75% to 4%. This marked the first such increase since 2023. Following the vote, Bitcoin dropped below $76,000 before staging its current recovery.
Fed Projections and ETF Outflows Point the Other Way
Contrasting signals remain present in the market. Data from the central bank reveals that 16 out of 18 Federal Reserve officials project another rate hike later this year.
Furthermore, fund flow data indicates that investors withdrew $450 million from Bitcoin exchange-traded funds (ETFs) on September 15.
According to price data from BeInCrypto, Bitcoin is up 0.6% for the day. The next major test arrives on September 30 with the release of the revised inflation data.