Bitcoin Bounces Back Above $76,000 as Fed Rate Hike Fears Send Price into a Tailspin
Bitcoin took a sharp dive below $75,000 on September 15 but quickly rebounded above $76,000 after a flurry of selling pressure that liquidated nearly $100 million in long positions. The sudden drop was triggered by growing expectations of a quarter-point rate hike from the Federal Open Market Committee and rising US 10-year Treasury yields, which surpassed 5% for the first time since November 2023.
The price swing caught overleveraged bulls off guard, with Bitcoin's weakest level since August 21 marking a multi-week trough. The Crypto Fear & Greed Index plummeted from 81 to 67 as the market pulled back leverage and tightened stops ahead of the FOMC rate decision.
Traders are now fixated on the $75,000 to $76,000 zone as critical support, with a recovery above $77,000 potentially signaling that the dip below $75,000 was a liquidity sweep rather than the start of a deeper correction. Analysts have identified the $73,000 to $74,000 range as the next support level if the current floor gives way.