Bitcoin Stuck at $85,000 as Rising Yields and Sell Pressure Keep Rally in Check

Bitcoin (CRYPTO:BTC) has been unable to break through the $85,000 barrier despite reaching it earlier this month. The cryptocurrency surged past $85,000 on September 21 after a better-than-expected inflation report showed the core PCE index rose only 0.2% in August.

This news led to a decrease in the probability of an October rate hike from around 70% to about 35%, prompting buyers to push Bitcoin's price above $85,000 shortly afterward. However, the Fed had already raised its benchmark interest rate to a range of 3.75% to 4% on September 16.

With the 10-year Treasury yield near 5.17%, investors can earn about $5,170 annually from a $100,000 investment in government bonds, making Bitcoin's zero yield hard to compete with.