Bitcoin Up 13% Since Fed Rate Hike as Wall Street Funds Return

Bitcoin has risen roughly 13% since the Federal Reserve lifted its target range to 3.75%‑4% on September 16. The bulk of the buying came from Wall Street funds, which reversed earlier outflows after a series of market events.

Why Funds Returned

1. Decision point resolved – Funds had been waiting for the outcome of the CLARITY Act vote, which failed by a 50‑49 margin on September 15. With the vote concluded, the waiting period ended.

2. Higher rates no longer deterred buyers – The two‑year Treasury yield peaked at 4.76% on September 18 and 21, coinciding with Bitcoin’s two biggest rally days. Analysts noted that the Fed’s stance was unlikely to become more hawkish, reducing rate‑related anxiety.

3. Technical room for upside – The UTXO Realized Price Distribution shows minimal supply concentrated around $87,100 (1.34%) and $88,400 (0.46%), indicating few holders would need to sell at breakeven.

Fund Activity and Price Moves

Spot Bitcoin ETFs attracted $2.31 billion in inflows on September 17, 18, 21 and 22. On September 18, funds bought $433 million of Bitcoin, lifting the price 5.9%. On September 21, purchases rose to $999 million, driving a 6.7% gain. These two days accounted for most of the 13.2% increase recorded by September 22.

Short‑seller liquidations also contributed: $262 million of short positions were forced to close on September 21, adding buying pressure.

Technical Outlook

Bitcoin broke out of an inverse head‑and‑shoulders pattern on September 21, surpassing the neckline with the highest daily volume since August 21. The next resistance is $86,935; a close above this level could open a path toward $89,825, $93,940 and potentially $117,247, which is near the all‑time high of $126,080.

Support sits around $84,569, where 2.92% of supply is concentrated, just above the $84,045 technical level. A close below $84,045 would re‑activate the neckline near $82,000.

Analyst View

Funds continued buying even as the two‑year Treasury yield remained near its September peak, suggesting the rate hike no longer scares institutional investors. Upcoming inflation data on September 30 could influence sentiment, but a daily close above $86,935 would keep the bullish trajectory intact.