Bitcoin drops below $75,000, quickly rebounds above $76,000 as Fed rate hike fears rattle crypto

Bitcoin briefly slipped below the $75,000 mark on September 15 before bouncing back above $76,000, a whiplash move that liquidated nearly $100 million in leveraged longs. US 10-year Treasury yields surpassed 5% for the first time since November 2023, and growing expectations of a quarter-point rate hike from the Federal Open Market Committee sent risk assets into a tailspin.

The numbers behind the drop

Bitcoin opened the session near $78,189 and briefly climbed to approximately $78,250 before sellers took control. The decline accelerated through the afternoon, with the price bottoming out between $75,560 and $75,605.

That low marked Bitcoin’s weakest level since August 21, making it a multi-week trough that caught overleveraged bulls off guard. Over $98 million in long positions were liquidated during the session.

The move came just a day after Bitcoin had been rejected at session highs around $79,000 to $79,600. The Crypto Fear & Greed Index dropped from 81 to 67 over the course of the session, a slide from solidly greedy territory back toward neutral.

Why Treasury yields are driving Bitcoin’s price

The 10-year yield crossing 5% is particularly significant because it represents a psychological threshold. The last time yields were at this level was November 2023.

The anticipated FOMC rate hike, even at just 25 basis points, would represent a continuation of tightening that many investors had hoped was behind them. After Bitcoin’s rejection near $79,600 on September 14, large holders appear to have used the failed breakout as an exit signal, with that selling pressure cascading into the following session and triggering the liquidation wave that pushed prices below $76,000.

Critical support and what comes next

Traders are now fixated on the $75,000 to $76,000 zone as critical support. Analysts have identified the $73,000 to $74,000 range as the next support level if the current floor gives way.

A recovery above $77,000 could signal that the dip below $75,000 was a liquidity sweep rather than the start of a deeper correction. The Fear & Greed Index’s slide from 81 to 67 reflects a market that has pulled back leverage and tightened stops ahead of the FOMC rate decision.

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