Bitcoin Eyes $93,000 if Yields Drop and Inflation Cools

Bitcoin's price could reach between $90,000 and $93,000 if Treasury yields continue to ease and inflation data supports weaker employment reports, according to Lacie Zhang, Research Lead at Bitget Wallet. As of October 5, the odds of a Federal Reserve rate hike in October had fallen to roughly 23%, down from 64% earlier, driven by disappointing September payroll data.

Zhang noted that U.S. spot Bitcoin ETFs attracted significant inflows, totaling about $2.65 billion in September and $134 million in the first two trading days of October. However, these inflows have not been sufficient to push Bitcoin above the key resistance level of $87,400, suggesting that sellers are still absorbing the demand.

To confirm a breakout, Zhang emphasized the need for a daily or weekly close above $87,400, coupled with sustained buying pressure. She identified $90,000 and $93,000 as potential upside targets, contingent on lower yields and supportive inflation data. Downside support levels were placed at $84,000 and $82,000.

Zhang warned that stronger-than-expected inflation readings or renewed rate-hike expectations could derail this optimistic outlook, pushing Bitcoin toward lower support levels. The current market dynamics highlight the delicate balance between institutional demand and profit-taking pressures.