Bitcoin struggles near $86,000 as bond yields climb
Bitcoin (BTC) hovered around $86,000 after the Wall Street open on Monday as US bond yields continued to climb. The cryptocurrency faced rejection near its weekly high of $86,570, marking its best weekly close in eight months. Despite this, Bitcoin's price action remained subdued, with the $87,570 level acting as a key psychological resistance.
US bond yields rebounded, with the 30-year yield nearing 5.67% and the 10-year yield returning to 5.31%. Trading company QCP Capital noted that even cooler US employment data had not calmed bond markets, citing geopolitical uncertainty and elevated oil prices as factors limiting upside momentum for risk assets. US stocks opened higher, with the S&P 500 and Nasdaq Composite Index gaining 0.5% and 0.7%, respectively, as traders anticipated a pause in interest-rate hikes at the Federal Reserve's October meeting.
Deutsche Bank analysts highlighted the importance of the upcoming minutes from the September Federal Open Market Committee (FOMC) meeting, suggesting they would carry more weight due to the recent bond sell-off. Meanwhile, onchain analytics platform Glassnode reported a moderation in Bitcoin's aggressive upward momentum, though it did not signal an immediate trend reversal. Bitcoin has maintained its September gains despite ongoing profit-taking, with long-term holders' behavior remaining a key focus.