Key Highlights:
- Bitcoin rose 0.4% to just above $83,700 during Thursday morning trading in Asia.
- Bitcoin briefly reached $85,500 after a softer-than-expected U.S. inflation report before retreating as Treasury yields remained elevated.
- HYPE and Dogecoin led major cryptocurrencies higher, while Solana underperformed and fell nearly 1%.
Bitcoin Gains Fade as Treasury Yields Stay Elevated
Bitcoin rose 0.4% to just above $83,700 during Thursday Asian morning hours, according to CoinDesk data. The largest cryptocurrency had climbed as high as $85,500 on Wednesday after a softer-than-expected U.S. inflation report, but part of that advance faded as Treasury yields remained close to their highest levels since 2002.
The market response reflected a split between improving inflation expectations and persistent pressure from elevated bond yields. Lower inflation can reduce expectations for further interest-rate increases and support demand for risk assets, while high Treasury yields can continue to compete with cryptocurrencies and other investments for capital.
HYPE and Dogecoin Outperform Major Crypto Assets
HYPE was the strongest performer among major cryptocurrencies, rising 3% to about $89. Dogecoin gained nearly 2% to just under 10 cents. Ether, BNB, TRX and ZEC each advanced by less than 1%, while XRP was flat at $1.50.
Solana was the session’s laggard, slipping nearly 1% to just under $119. The mixed performance showed that the broader crypto market had not moved uniformly higher despite Bitcoin’s modest gain and the initial boost from the inflation data.
Analyst Says Inflation Data Reduced Immediate Rate-Hike Risk
“August’s PCE report showed inflation cooling more than expected, with prices up 3.4% from a year earlier and 3.0% excluding food and energy, which has reduced the odds of another Federal Reserve rate increase in October and made December look like the more likely next move,” Dan Khus, chief analyst at LVRG Research, said in an email to CoinDesk.
“Crypto markets took that as a relief signal, and bitcoin jumped back above $85,000 as bond yields slipped and investors became more willing to buy risk assets again,” he added.
Why This Matters
U.S. inflation data and Treasury yields remain important short-term drivers for Bitcoin and other cryptocurrencies because they influence expectations for Federal Reserve policy and investor appetite for risk. The move above $85,000 after the inflation report demonstrated the market’s sensitivity to signs of cooling price pressures, while the subsequent retreat highlighted the continuing impact of elevated bond yields.
For crypto investors, the next market direction will depend on how traders weigh the reduced likelihood of another Federal Reserve rate increase in October against the prospect of a later policy move in December and ongoing pressure from high Treasury yields.
Frequently Asked Questions
How much did Bitcoin rise?
Bitcoin gained 0.4% to just above $83,700 during Thursday Asian morning hours. It had reached as high as $85,500 on Wednesday.
Which cryptocurrencies performed best?
HYPE rose 3% to about $89, while Dogecoin gained nearly 2% to just under 10 cents. Ether, BNB, TRX and ZEC each added less than 1%.
Why did Bitcoin initially rise?
A softer-than-expected U.S. inflation report reduced expectations of another Federal Reserve rate increase in October. Bitcoin’s gains later faded as Treasury yields remained near their highest levels since 2002.