Tom Lee and iTrustCapital CEO Kevin Maloney said the worst of the market downturn may be over after Bitcoin rebounded despite the CLARITY Act failing a Senate procedural vote and the Federal Reserve raising its benchmark rate. Bitcoin traded at $86,423 on Tuesday, up from below $76,000 a week earlier. Maloney said iTrustCapital held about $350 million in idle client cash, with significant portions now being invested again, and identified a weekly close above $85,000 as a positive level for Bitcoin. Lee, Fundstrat Capital's chief investment officer, said the latest rate increase represented the peak of hawkish policy and pointed to revised inflation data due September 30. Economists expect the change to lower the Personal Consumption Expenditures inflation rate from 3.4% to near 3%. Risks remain: 16 of 18 Fed officials project another rate increase this year, while Bitcoin ETFs recorded $450 million in outflows on September 15.