Bitcoin Surges on Short Squeezes and ETF Inflows, Faces Pressure from Rising US Yields

Bitcoin climbed to the $87,000 range between September 20 and 26, driven by short covering and approximately $2.4 billion in weekly inflows into US spot Bitcoin ETFs, the highest since October 2025. The rally stalled as US September PMI data hit a five-year high, pushing long-term interest rates to levels not seen since 2007 and fueling hawkish sentiment from Federal Reserve officials. Additionally, Bitget reported a security breach resulting in a loss of approximately $390 million, with suspected North Korean involvement. Market participants are now focused on upcoming US labor and inflation data, as well as the Bitcoin Treasuries Conference and Korea Blockchain Week 2026.