Macroeconomic pressure has once again impacted risk assets. Bitcoin fell 4.3% to around $83,500 as the 10-year US Treasury yield surged past 5.20% from 4.95%. Rising bond yields also weighed on traditional equities, with the S&P 500 falling 1.2% and the Nasdaq slipping 1.4% over the same period. Despite falling spot prices, institutional investment flows took a different path, with crypto ETF investment products drawing $2.39 billion in inflows over the past week.
Data from Hilbert Group, a digital asset investment firm on the Nasdaq First North exchange, released on September 28, 2026, highlighted the divergence between cash flows and spot prices. The $2.39 billion inflow pushed year-to-date net flows for crypto ETFs back into positive territory for 2026. This new figure erases historical deficits after the ETF market logged losses of up to $5.8 billion in July. The institutional capital accumulation trend also continued after Bitcoin ETF products pulled in $2.98 billion the previous week.
Responding to Price Declines
Hilbert Group senior portfolio manager Jesse Marre noted investor behavior amid rising government bond yields. “Bitcoin was sold down 4.3 percent on the yield breakout, and fund flows kept coming in,” he said. Large-scale investors used the dip to continue expanding their holdings through ETF instruments.
On the price action front, Bitcoin is currently in a weekly consolidation phase, fluctuating between $82,400 and $87,500. The $89,000 level serves as the key pivot for the next trend direction. If the price successfully clears that upper threshold, Bitcoin has room to advance toward its next target at $95,000.
Volatility Declines Ahead of Fed Decision
Options market indicators reveal a situation contrasting with weekly price movements. Implied volatility (DVol) is currently pinned at 35. At the same time, the spread between implied volatility and realized volatility narrowed sharply from 7 points to just 1 to 1.5 points.
Subdued volatility metrics carry hidden risks. Marre warned that persistently elevated bond yields alongside depressed volatility suggest economic pressure is not yet over. The market’s next direction hinges on the Federal Reserve’s actions across its two remaining meetings this year, scheduled for October and December. For the October meeting, the odds of the US central bank hiking interest rates have dwindled to around 50%.
Reported by crypto.news.
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Previously: Bitcoin ETFs Draw $2.98 Billion in 7 Days - Investors Back in Profit Since January
Disclaimer: This article is for informational and educational purposes only, not financial advice. Cryptocurrency assets are highly volatile and carry significant risk. Always do your own research (DYOR) and never invest more than you can afford to lose.
