Bitcoin Misses $85K Mark Amid Elevated Treasury Yields

Bitcoin's rally on lower-than-expected US inflation data was short-lived, failing to hold above $85,000. The price climbed to $85,500 before retreating to around $83,700, according to CoinDesk's market review on October 1.

Dan Khus, Chief Analyst at LVRG Research, pointed out that the personal consumption expenditures report for August indicated a stronger-than-expected slowdown in inflation, reducing the likelihood of the Fed raising interest rates again in October.

Treasury yields initially fell after the data release, but sharply rose on Wall Street, erasing much of Bitcoin's gains. The 10-year Treasury yield stood at around 5.28%, near its previous day's high, while the 30-year yield stabilized around 5.62%.

The dollar strengthened and oil prices fell, contributing to a sustained decline in Treasury yields being key to Bitcoin holding onto its next rally, according to analysts.