PrimeXBT Insights: Bitcoin rallied through a rate hike; Can it rally through a bond selloff?

Summary

Bitcoin fell briefly after the Senate blocked the CLARITY Act and the Fed hiked rates, but the bigger driver became the bond market. On 23–24 September, the 10-year Treasury yield surged above 5.2% and the 30-year reached about 5.5%, levels not seen in years. Strong PMI data, a weak auction, and higher oil helped push yields higher. Unlike the Fed hike, which markets had already largely priced in, rising long-term yields created a direct headwind for Bitcoin because higher bond returns compete with a non-yielding asset. Spot Bitcoin ETF flows stayed positive overall, but buying slowed as yields rose, showing some pressure on demand. Technically, Bitcoin broke above $80,000, made a higher high near $87,000, and the 20-day EMA crossed above the 50-day EMA on the 3-day chart. The $80,000 area is key support; losing it would weaken the bullish setup.