Bitcoin Seesaws on Treasury Bond Rally and Soft Inflation Data

Bitcoin started the fourth quarter on a positive note, reversing its course to trade higher on Thursday. The world's largest cryptocurrency was bolstered by a rally in the U.S. Treasury bond market, which helped offset concerns over high yields. This move came after a 43% surge in Q3, largely driven by optimism over U.S. regulatory approval.

The price of Bitcoin initially slipped due to surging U.S. Treasury yields, but the bond rout eventually subsided, allowing the cryptocurrency to regain momentum. The ISM's latest report on the U.S. manufacturing sector showed a significant increase in the prices index, but this was overshadowed by a slump in yields. The benchmark 10-year Treasury yield fell 6.5 basis points to 5.246%, while the 30-year yield dropped 2.3 basis points to 5.616%.

The focus now shifts to Friday's nonfarm payrolls report, which will provide further cues on the Fed's future interest rate actions. In other news, Open Standard's stablecoin, OpenUSD, went live on Wednesday, backed by payments giants Visa, Mastercard, Stripe, and crypto exchange Coinbase. The stablecoin aims to target banking, cross-border payments, and institutional trading.