Bitcoin Bubble Burst: Analyst Warns of Reversal at $86,000

Bitcoin's recent surge above $86,000 has some market analysts predicting a possible reversal in trend. According to Oliver Carding of Tesseract Group, managing $500 million in assets, if the U.S. 10-year real Treasury yield remains above 3%, Bitcoin may retest the $80,000, $82,000 range before reaching $90,000.

Carding pointed out that he uses a real yield of around 3% as a level to watch. If yields make a sustained move above that level, he sees Bitcoin as more likely to retest the lower range than to rise to $90,000.

The key indicator Carding is watching is the inflation-adjusted yield on 10-year U.S. Treasury bonds. He also mentioned the importance of employment and inflation data in affecting long-term bond yields, citing the upcoming October 14 CPI report and Friday's jobs report as crucial for market direction.