Bitcoin Defies Bond Selloff to Hold Breakout but Struggle to Extend Gains

In mid-September, Bitcoin's prospects looked bleak after the CLARITY Act failed in the Senate and the Fed raised interest rates to 3.75 to 4.00%. However, just a week later, it broke above $87,000.

The bond market then moved, with the 10-year US Treasury yield jumping more than 18 basis points on September 23rd, its biggest one-day rise since April 2025. The next day, it reached 5.2%, its highest level since 2007.

This sudden increase in yields didn't seem to affect Bitcoin's price as much as expected. In fact, spot Bitcoin ETFs took in $2.39 billion in the week ending September 25th, their largest week since October 2025.

Despite this, the bond selloff has no clear end point, and yields above 5% directly compete with an asset that pays nothing, Bitcoin. However, many in crypto see the increasing supply of bonds as a long-term case for owning Bitcoin.

The chart suggests that Bitcoin is holding its breakout but struggling to extend it. The moving averages are supporting this picture, with the 20 EMA crossing above the 50 EMA on the 3-day chart for the first time since November 2025.