Mars Finance news: On September 23, Bitcoin briefly rose above $87,000, reaching its highest level since January. It then pulled back, falling 3.85% and once dropping below $84,000. Although the cumulative gain over the past week is still over 10%, tonight’s retracement may indicate that after the rapid surge, the market has begun to digest profit-taking orders and is reassessing the liquidity pressures driven by interest rates, oil prices, and the situation in the Middle East. Overheated sentiment is the first reason. According to Alternative.me data, the Fear and Greed Index rose to 78 on September 22, returning to the “Extreme Greed” range—its first time in about 14 months. Prior to the surge toward $87,000, there was also a clear catalyst from market structure. Inflows into U.S. spot Bitcoin ETFs have rebounded, and short-term short covering has also contributed, together driving a rapid breakout through key resistance levels. The buying pressure caused by forced short liquidations can be highly explosive during price acceleration, but once the price enters high-range consolidation, its incremental driving force will quickly weaken, and the market will then rely more on genuine spot buying to provide support. Meanwhile, macro pressures are also rising in parallel. During a market decline, Federal Reserve Governor Barr said further rate hikes may be necessary to ensure a timely return to the 2% inflation target. The Fed is in a difficult position, but has adjusted in the right direction. Recently, other Fed officials have also shown a hawkish stance. Boston Fed President Collins said stubborn inflation and energy pressure stemming from the Middle East conflict are important reasons she supports a September rate hike and expects there may be another hike later this year. Chicago Fed President Goolsbee also said that with ongoing supply shocks, lowering inflation may require further increases in interest rates, which would bring economic pain. The market has therefore started to reprice the risk that “higher interest rates will remain in place for longer.” At the same time, the Strait of Hormuz remains the key variable for the inflation trade. Iranian President Pezeshkian said in tonight’s speech that, given Iran’s sanctions, the Strait of Hormuz cannot be allowed to be used freely. Many institutions generally believe that if oil prices remain at elevated levels for the long term, it will push up energy inflation and squeeze the Fed’s room to ease. A scenario study by the Dallas Fed estimates that if the Strait of Hormuz is shut for a quarter, Q4 2026 PCE inflation could rise an additional 1.09 percentage points. For Bitcoin, this would create pressure through the U.S. dollar, real interest rates, and risk appetite. With multiple macro bearish events compounding, the yield on U.S. 10-year Treasuries rose to 5.04%, setting a fresh high since 2007. The U.S. Dollar Index (DXY) moved up to 101, the first time since July 30, and was up 0.47% on the day.