Bitcoin Eyes Best Quarter in Nearly Two Years Amid Late-Quarter Weakness

Bitcoin is on track for its strongest quarterly performance in nearly two years, defying late-quarter weakness to gain over 40% since June. Despite a recent pullback from an eight-month high above $87,000, the cryptocurrency remains poised for a quarterly gain that has not been seen since Q4 of last year.

The price of Bitcoin recently traded at around $83,322, up roughly 0.5% in the latest session after fluctuating between $82,870 and $84,486. Institutional demand has played a significant role in the third-quarter recovery, with US spot Bitcoin exchange-traded funds attracting about $2.4 billion in net inflows during the week to September 25.

The largest cryptocurrency's quarterly performance is also being supported by the continued accumulation of Bitcoin by Strategy, which purchased another 1,665 BTC for approximately $142.7 million at an average price of $85,681. This acquisition lifted the company's holdings to around 847,666 Bitcoin, with its latest purchase made above the cryptocurrency's current market price.

The external pressure on Bitcoin remains high due to the global bond-market sell-off, with the US 10-year Treasury yield reaching its highest level since before the global financial crisis at around 5.29%. The expectation of further Federal Reserve tightening has also supported the US dollar and made government bonds more attractive relative to Bitcoin.