Tom Lee and iTrustCapital CEO Say the Worst Is Over: Can Bitcoin Hold $86,000?

Bitcoin (BTC) traded at $86,423 on Tuesday, up from below $76,000 a week earlier. Analysts Tom Lee and iTrustCapital CEO Kevin Maloney both said the worst of the recent downturn appears to be behind investors.

iTrustCapital CEO Declares Crypto Winter Over

Kevin Maloney, who runs iTrustCapital – a platform that allows crypto and stock investing in retirement accounts – told Paul Barron that the prolonged market slump, often called the “crypto winter,” has ended. He noted that his firm holds about $350 million in idle client cash, with “significant portions” now being redeployed into crypto assets. Maloney added that Bitcoin does not depend on the CLARITY Act and highlighted a weekly close above $85,000 as a key level for the asset.

Tom Lee’s View on Monetary Policy and Bitcoin

Fundstrat Capital chief investment officer Tom Lee described the recent Fed rate hike as a peak rather than the start of a new tightening cycle. He pointed to an upcoming change in the government’s inflation measurement, expected on September 30, which could lower the Personal Consumption Expenditures (PCE) inflation rate from 3.4% to near 3%. Lee argued that the Fed cannot become more hawkish and that even an additional 0.25‑point hike would not destabilise the economy or equity markets.

Recent Setbacks and Market Reaction

Two notable events occurred in the same week: the CLARITY Act, which sought to clarify U.S. regulatory authority over digital assets, failed a Senate procedural vote 50‑49, falling short of the 60 votes needed; and the Federal Reserve raised its benchmark rate by 0.25 percentage points to a 3.75‑4 % range – the first increase since 2023. Bitcoin briefly slipped below $76,000 after the vote but subsequently recovered to the current level.

Mixed Signals Ahead

Despite the rally, not all indicators are bullish. Sixteen of 18 Fed officials project another rate hike this year, and Bitcoin ETFs saw a net outflow of $450 million on September 15. Bitcoin is up 0.6 % on the day according to BeInCrypto price data. The next market test will be the revised inflation figures due on September 30.