Bitcoin Breaks Out as Nasdaq Hits Records and Oil Slides on Iran Hopes

Bitcoin surged past a resistance zone that had constrained its rally through most of September, trading near $86,559 and marking about a 12.2% weekly gain. The breakout coincided with the overall crypto market exceeding $3 trillion in capitalization, while sentiment gauges such as the Crypto Fear & Greed Index reached 79, putting market mood firmly in "greed" territory even as the Altcoin Season Index remained at 49 with Bitcoin still leading gains.

The advance in digital assets aligned with a broader risk-on backdrop on Wall Street. The Nasdaq Composite touched a fresh intraday high after chipmakers extended a winning run—AI-linked names saw sizeable moves, with Intel and AMD among notable performers. Stocks were buoyant even as the S&P 500 showed little change in the most recent session, suggesting concentrated strength in technology and semiconductor shares.

Commodities also played a role: oil prices eased after reports that Iran offered to reopen the Strait of Hormuz if U.S. pressure is eased, and Saudi Arabia moved to restart an East-West pipeline. Brent briefly fell below $98 a barrel and WTI slipped under $93, their lowest levels since September 8. Lower oil helped reduce near-term inflation worries that had contributed to recent volatility.

Monetary policy adds another layer to the market picture. The Federal Reserve raised its benchmark rate by 25 basis points to a 3.75%-4% range on Sept. 16—the first hike since 2023—but has simultaneously resumed regular purchases of short-term Treasury bills to keep bank reserves ample. That combination leaves the fed funds rate higher while the Fed's balance sheet holdings remain sizable (about $6.7 trillion), a dynamic that can support risk asset flows despite tighter policy.

Technically, Bitcoin's chart reflects bullish indicators: it cleared a key zone between roughly $79,673 and $84,144 and entered a golden cross, where the 50-day moving average sits above the 200-day average. Traders point to Fibonacci extension levels near $90,763 and $95,074 as potential upside references, while a pullback below the $79,673 area would reopen support levels around $75,436 and $73,617. Altcoins have also rallied, with XRP, Solana and Zcash posting notable weekly gains and most of the top 100 coins showing positive seven-day returns.