Bitcoin Tests $80K Resistance as Yields Surge to 22-Year High

Bitcoin rebounded to around $79,000 on Friday after US core inflation data came in broadly in line with expectations.

This helped ease pressure across risk assets earlier in the session, but the relief rally unfolded against a backdrop of sharp moves in US bond yields.

The CME Group's FedWatch Tool showed implied odds of a 0.25% rate hike at the September 16 meeting climbed to 85%, up from roughly 60% a week earlier.

According to QCP, higher yields and tightening expectations can become a headwind for Bitcoin until Treasury liquidity support takes hold.