CoinDesk
Bitcoin briefly topped $85,500 on Wednesday after a cooler-than-expected U.S. inflation report, then slipped back to just above $83,700 by Thursday morning in Asia. It was still up 0.4%, but much of the initial gain had faded as Treasury yields remained elevated. The 10-year yield traded around 5.28%, while the 30-year stood at 5.62% after reaching its highest level since 2002 during New York trading.
Why it matters
August's PCE report showed prices rising 3.4% from a year earlier and 3.0% excluding food and energy. Dan Khus, chief analyst at LVRG Research, said the softer reading reduced the odds of another Federal Reserve rate increase in October and made December look more likely for the next move. Bitcoin initially responded to that relief as bond yields slipped and investors bought risk assets.
The yield rebound changed the picture. High Treasury yields can make bonds more attractive relative to risk assets, limiting the benefit Bitcoin gets from a softer inflation print. Oil's decline helped pause the bond selloff, but the dollar strengthened and late swings on Wall Street erased much of crypto's advance.
Market impact
The pullback was uneven across major tokens. HYPE rose 3% to about $89 and Dogecoin gained nearly 2% to just under 10 cents. Solana fell nearly 1% to just under $119, while XRP was unchanged at $1.50. Ether, BNB, TRX and ZEC posted gains of less than 1% each.
Elsewhere, Nasdaq 100 futures rose 0.8% and S&P 500 futures gained 0.4% as technology stocks supported the broader risk mood in Asia. For Bitcoin, the key test remains whether the 10-year yield can fall enough for a move above $85,000 to hold.
Frequently asked questions
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What did the August PCE report show?
Prices rose 3.4% from a year earlier and 3.0% excluding food and energy. The reading was softer than expected.
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Why did Bitcoin give back much of its initial gain?
Treasury yields remained elevated after Bitcoin briefly topped $85,500. By Thursday morning in Asia, it had slipped to just above $83,700.
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Where were the 10-year and 30-year Treasury yields?
The 10-year yield traded around 5.28%. The 30-year stood at 5.62% after reaching its highest level since 2002 during New York trading.
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How did other major cryptocurrencies perform?
HYPE gained 3% and Dogecoin rose nearly 2%. Solana fell nearly 1%, while XRP was unchanged at $1.50.
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What is the key market condition to watch for Bitcoin?
A sustained decline in the 10-year Treasury yield would give a Bitcoin rally above $85,000 more room to hold. The yield remained near 5.3% as the initial rally faded.
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