Bitcoin rallied nearly 6% to exceed $61,000 before losing momentum as anticipation mounts ahead of the Federal Reserve’s key interest rate decision scheduled for Sept. 18.

This marks the end of a brief three-day downturn, where Bitcoin dropped from its recent two-week high before experiencing a rebound. The latest surge positions the world’s most valuable cryptocurrency back above a critical psychological threshold.

At the time of writing, BTC was trading at $60,935, representing a 5.5% increase over the past 24 hours, according to CryptoSlate data.

Market Rebound

The broader crypto market also exhibited signs of recovery, adding over $45 billion to its total value, with Bitcoin and Ethereum leading the upward trend. However, the performance of the top 10 cryptocurrencies by market capitalization has been uneven, suggesting a cautious sentiment within the market.

Ethereum (ETH), the second-largest cryptocurrency, witnessed a significant 3.5% increase in the last 24 hours, pushing its price to $2,369.38. BNB and Solana (SOL) experienced gains of 2.43% and 1.45% over the same period, trading at $546 and $132.47 respectively as of press time.

Meanwhile, XRP and Dogecoin (DOGE) showed an approximate 2% surge over the past 24 hours, trading at $0.5857 and $0.1014 respectively. Avalanche (AVAX) saw a notable 3.43% rise, trading at $24.2 as of press time.

Toncoin (TON) saw a modest gain of 1.38%, reaching a price of $5.50. TRON (TRX) experienced a slight increase of 1.61%, hitting $0.1507, while Cardano (ADA) climbed 1.87% to $0.3371 as of press time.

US Treasury Yields tumble

Bitcoin's recent climb has coincided with a sharp drop in US 10-year Treasury yields, reaching their lowest point in 15 months. These yields have fallen for three consecutive trading sessions, fueled by speculation regarding a possible interest rate reduction by the Federal Reserve.

Historically, a decline in Treasury yields has indicated that investors are becoming more comfortable with riskier investments, including cryptocurrencies.

The Fedwatch tool indicates growing confidence in a 0.5% interest rate cut by the Federal Reserve. The likelihood of such a move has climbed to nearly 70%. Meanwhile, a smaller 0.25% cut remains less probable. Market participants anticipate that the Fed's decision will mark the beginning of a new era of monetary easing.

This could provide extra backing for Bitcoin and other digital assets, which typically flourish in periods of high risk tolerance.