Bitcoin Rises 8% to $87K as U.S. Treasury Yields Decline
Bitcoin (BTC) rose about 8% to $87.2k on Monday, leading a broad market rally driven primarily by a massive short squeeze that forced over $447 million in bearish bets to be covered.
BTC price movement was supported by significant capital rotation into riskier assets as US Treasury yields declined. Bond yields declined as markets reacted to central-bank moves and oil prices slipped. The Bank of England kept its policy rate unchanged at 3.75%, as expected.
The decision came after the U.S. Federal Reserve’s well-anticipated quarter-point interest-rate hike, which brought the fed funds target rate range to 3.75%-4.00% in a unanimous vote Wednesday.
According to crypto analysts, investors are circling back into top digital assets, a move supported by declining yields and a geopolitical outlook as the US and Iran are set to commence fresh diplomatic talks.
Traders reported that a rapid price surge above the key $82,000 resistance level triggered a cascade of liquidations in the crypto market. Over 24 hours, $447.48 million in BTC short positions were liquidated, forcing bears to buy back, which accelerated the rally.
The move was confirmed by a 154% spike in trading volume. The market rapidly unwound a large pool of leveraged bearish bets, creating a powerful, self-reinforcing upward move.
U.S. spot Bitcoin ETFs saw approximately $593 million in net inflows on September 17–18, reversing prior outflows and signalling a return of institutional demand. Concurrently, falling oil prices and a retreat in U.S. Treasury yields improved the risk-asset environment.
Capital flowed back into regulated Bitcoin products amid a slightly improved macro backdrop, supporting the rally. The immediate trigger is watching the $82,300 level (the recent breakout point).
If Bitcoin holds above it, the next logical targets are the Fibonacci extension levels near $88,000–$90,000. The key risk is a failure to hold this support, which could trigger profit-taking and a retest of the 50-day moving average near $77,000.
The short-term bias is bullish but contingent on holding recent gains. The combination of a violent short squeeze and renewed ETF buying has propelled Bitcoin to multi-month highs.
Analysts said BTC’s sharp rally may trigger short-term profit-taking sell-offs, but this is a typical characteristic of the mature stage of a bull market.
Subsequently, liquidity is expected to spill over into the altcoin sector, potentially ushering in a broader altcoin season and pushing the entire crypto ecosystem into a period of explosive growth.
# Bitcoin Rises 8% to $87K as US Treasury Yields Decline Bitcoin Price Jumps on Spot ETF Inflows, $99.99K Prediction
