Bitcoin Slips Below $84,000 as Institutional Demand Weaks and US Yields Rise

Bitcoin struggled to hold above the $85,000 resistance level on Thursday, slipping below $84,000 as institutional demand weakened and US Treasury yields and the dollar rose. The cryptocurrency's failed attempts to reclaim the $85,000 mark, despite an initial positive response to weaker-than-expected US Personal Consumption Expenditures Price Index data, left it trading at $83,623 by the end of the day.

The weakening institutional demand, signaled by spot Bitcoin exchange-traded funds recording net outflows of $148.69 million on Wednesday, ending a nine-day streak of inflows, is a concerning trend for Bitcoin's price momentum. The data from SoSoValue showed that ETF flows had begun to gradually weaken since September 21 before turning negative on Wednesday.

The combination of higher Treasury yields and a stronger dollar, with the US Dollar Index rising above 101.80 on Thursday, is also putting pressure on Bitcoin. The 5-year US Treasury yield climbed above 5%, while the 10-year yield exceeded 5.2%, reaching their highest levels in around 19 years. This shift in market dynamics is making traditional fixed-income instruments more appealing relative to riskier assets like Bitcoin.