Bitcoin Climbs to $85,000 and Tech Stocks Gain as Treasury Yields Pull Back After Fed Rate Hike

Bitcoin surged to around $85,000 and technology stocks rallied on September 21 as Treasury yields eased following the Federal Reserve's 25-basis-point rate increase on September 16, which lifted the federal funds rate to 3.75%-4.00%, the first such hike since July 2023. The counterintuitive market move reflected investor relief that the post-decision yield spike was fading, allowing rate-sensitive assets to recover ground.

Corporate Bitcoin buyers moved quickly to capitalize on the rebound. Strategy Inc., the largest public holder of Bitcoin, acquired 950 BTC for $75.7 million between September 14 and September 20 at an average price of $79,670 per coin, according to a regulatory filing. Strive Asset Management purchased 1,375 BTC for approximately $107 million over a similar period, bringing the combined buying by the two firms to roughly $183 million.

The purchases revived the Bitcoin treasury trade, a strategy in which publicly listed companies accumulate Bitcoin on their balance sheets, often funded through equity or preferred stock offerings. The rally toward $85,000 helped restore paper gains that had been eroded when Bitcoin slipped toward the mid-$70,000s in the immediate aftermath of the Fed decision and Fed Chair Kevin Warsh's inflation commentary. Gold analysts also argued that the rate-hike cycle did not alter the bullish case for the metal, pointing to persistent inflation and supply-side pressures the Fed cannot directly address.