Bitcoin Surges Past $85,000, But Treasury Yields Keep Opportunity Cost High

Bitcoin's price has finally broken through the $85,000 barrier, a milestone it had been trying to reach for nearly a week. According to Glassnode, the move was facilitated by the clearing of a large sell wall at $85,000 on October 1, after which most of the remaining sell orders above that level were removed. This reduction in ask liquidity overhead allowed the price to move up faster.

The 2.9% daily gain pushed Bitcoin's price to around $86,794, although it later eased back below $86,000. The daily volume rose to $38.4 billion, and open interest in perpetual futures climbed to $71.4 billion.

While the softer U.S. inflation data did contribute to the risk appetite, the 10-year Treasury yield staying near 5.28% keeps the opportunity cost of holding a non-yielding asset like Bitcoin high. This macro pressure has not gone away, tempering expectations for BTC's near-term upside.

For now, this is a recovery, not a confirmed breakout. Bitcoin's next major hurdle is the $87,397 level, the September 21 high. A decisive close above it could bring $90,000 into view.