Bitcoin Defies Rate Hike Expectations with 13% Surge
Bitcoin (BTC) made an unexpected surge of over 13% after the Federal Reserve's rate hike, challenging the conventional wisdom that macro-tightening expectations would negatively impact crypto-assets. The reversal was driven by three key factors: exhaustion of negative factors, interest-rate insensitivity, and a technical breakout.
According to Woofun AI analysis, the failure of the 'Clarity Act' to pass the Senate on September 15 removed short-term uncertainty, allowing funds that had withdrawn prior to the vote to re-enter the market. The market's desensitization to high-interest-rate environments also played a significant role, with the yield on the two-year U.S. Treasury note reaching a peak of 4.76% on September 18 and 21 - coinciding with Bitcoin's sharp rallies.
The technical breakout, combined with massive capital inflows, was another crucial driver. Fund flow data showed that between September 17-22, Bitcoin spot ETFs attracted $2.31 billion in inflows, with buying surging to $999 million on September 21, pushing prices up by 6.7%. The strong surge triggered a short squeeze, with $262 million in short positions liquidated within an hour.
Looking ahead, technical charts indicate a clear upward trajectory for Bitcoin, with key support levels and resistance points outlined. According to the pattern, Bitcoin has roughly 43% upside potential, with a theoretical target of $117,247 - just 7% below its all-time high of $126,080.