Bitcoin Suffers Macro Headwinds as Institutional Capital Holds Firm

The Bitcoin price faced significant pressure on September 23 due to macro data and surging bond yields. The US 10-year Treasury yield rose by 15 basis points, reaching 5.11%, with the Federal Reserve having raised interest rates to a target range of 3.75% to 4.00% on September 16. This increase in interest rates compressed the room for further rate cuts, making it more costly to hold non-yielding assets like Bitcoin.

The price falling below $84,000 triggered severe leverage flushing, with approximately $280 million in long positions being forcibly liquidated during the same trading day. According to Glassnode, the $84,000 to $85,000 range is a key support area, while $77,000 is considered the 'true market mean' if the price continues to decline.

Despite the pressured macro environment, institutional capital positioning showed resilience. Spot Bitcoin ETFs attracted approximately $1.3 billion in inflows within five days after the start of the recent market pullback, reversing outflows from the previous two weeks. This trend continued even as bond yields surged and the sell-off in the bond market on Wednesday.