Bitcoin Price Halted Above $87,000 as Treasury Yields Rise

Bitcoin's recent price surge has hit a roadblock after US business activity data pushed Treasury yields higher, causing the cryptocurrency to dip below $84,000. The BTC-USD price had earlier risen above $87,000, but the decline reversed some of the gains made over the past four days.

According to Riya Sehgal, Research Analyst at Delta Exchange, institutional interest continued to support Bitcoin's rally, with US spot Bitcoin ETFs recording inflows of around $1.71 billion between September 21-22. Derivatives positioning also contributed to the upward momentum, with over $1 billion worth of crypto positions being liquidated.

However, Sehgal noted that near-term momentum has weakened and a sustained recovery has yet to be established. The market is now facing two diplomatic tests: progress on US-Iran negotiations and the Trump-Xi meeting. Constructive outcomes could support sentiment, while renewed tensions would compound pressure from elevated yields and energy prices.

Nischal Shetty, Founder of WazirX, highlighted that $83,520 is a key support level to watch, followed by $81,000. A sustained move above $87,000 could restore positive momentum, but markets may remain sensitive to bond yields, inflation expectations and geopolitical developments.