Bitcoin Fights Back from $87,200 Low Amid Macro Pressures
Bitcoin has recovered slightly from its sharp fall to around $84,000 on Friday, September 25, after trading as low as $83,000 earlier in the day. According to analysts, the rebound is not yet confirmed due to ongoing macroeconomic pressures and derivatives volatility.
Minal Thukral, Executive Vice President-Growth & Crypto Business Head at CoinDCX, stated that Bitcoin was trading around $84,250 after consolidating following the sharp drop from $87,200. The broader crypto market remained mixed, with the Crypto Fear and Greed Index at 73, indicating a greedy market sentiment.
Vikram Subburaj, CEO of Giottus.com, noted that Bitcoin's price was around $84,200 due to rising US Treasury yields triggering a risk-off move. He mentioned that the 10-year US Treasury yield has moved above 5%, while markets reassess the path of US interest rates with expectations turning more hawkish.
Riya Sehgal, Research Analyst at Delta Exchange, pointed out that higher oil prices and US Treasury yields were weighing on risk appetite, adding that conflicting reports around possible US-Iran talks kept the macro outlook unsettled. Prateek Gupta, Head of Business at Mudrex, stated that Bitcoin's recovery found support from demand in the spot market.
Some indicators suggest continued demand despite the correction. Gupta mentioned that spot Bitcoin ETFs recorded inflows for a fifth consecutive day, attracting more than $2.65 billion so far. He also noted that holders with 100-1,000 BTC had accumulated more than 113,000 BTC since mid-July, while profit-taking remained moderate.
The pace of ETF buying has not been uniform, according to Subburaj. He stated that spot Bitcoin ETF inflows slowed sharply to $28.1 million on September 24 after stronger buying earlier in the week. The CoinSwitch Markets Desk said consistent ETF inflows and continued whale accumulation suggest underlying demand remains firm despite macro pressures.
The recent price move has affected leveraged positions, with nearly $80 million in BTC long liquidations triggered by intraday volatility briefly pushing Bitcoin below $83,000. Nischal Shetty, Founder of WazirX, said derivatives activity had cooled, with open interest falling around 16% to approximately $376 billion.
The market is heading into a period of higher derivatives volatility, according to Subburaj, due to the September 25 crypto options expiry adding to short-term positioning risks. Sehgal stated that traders would be watching US economic releases, oil prices, and bond yields, as well as the quarterly crypto options settlement which could increase volatility.