Bitcoin Holds Ground Amid Bond Market Turmoil and Rising Yields

Bitcoin's price slipped to around $83,800 this week as US bond yields surged to their highest levels in decades. The 30-year Treasury yield climbed to 5.4%, its highest level in 23 years, while the 10-year yield touched 5%, a level last seen in 2007 just before the global financial crisis.

The jump in yields followed stronger-than-expected manufacturing data, with the PMI index coming in at 57 against expectations of 53.7, signaling that the economy is running hotter than anticipated. This has raised concerns that inflation could pick back up, increasing the likelihood of a rate hike at the Federal Reserve's October 28 meeting to 73.1%.

Bond markets took another hit after a weak auction of five-year US government debt, with demand from indirect buyers falling short and forcing the government to offer higher yields to attract sufficient interest. This pattern is reminiscent of past major policy shocks, where bond yields rose sharply.