Bitcoin Falls Nearly 4% From Intraday High as Macro Risks Mount
Bitcoin briefly topped $87,000 before dropping below $84,000 on Sept. 23, while the token remained up more than 10% over the past week.
Bitcoin (BTC) dropped 3.85% from its intraday high on Sept. 23, slipping below $84,000 after briefly breaking above $87,000 as investors reassessed interest-rate, oil-price and Middle East risks.
The decline followed a rally that had lifted Bitcoin more than 10% over the past week. The move above $87,000 was supported by renewed spot Bitcoin ETF inflows and short covering, but that buying pressure weakened as prices moved into a higher range.
Hawkish signals from Federal Reserve officials added to the pressure. One Fed governor said further rate increases may be needed to bring inflation back to the 2% target, while other regional Fed presidents pointed to persistent inflation and energy costs tied to the Middle East conflict.
Iranian President Pezeshkian said Iran could not allow the Strait of Hormuz to be freely used while the country remains under sanctions. The waterway is a key variable for oil markets, and prolonged energy-price strength could limit room for easier U.S. monetary policy.
The U.S. 10-year Treasury yield rose to 5.04%, its highest level since 2007, while the dollar index reached 101, up 0.47% on the day. The Fear and Greed Index stood at 78 on Sept. 22, returning to extreme greed for the first time in about 14 months.
