Bitcoin Trades Around $84,000 as Crypto Market Remains Cautious

Bitcoin began October around $84,000, following a strong September, as softer US inflation data improved sentiment across risk assets. However, elevated US Treasury yields and uncertainty over the next move in interest rates kept the broader crypto market cautious.

Bitcoin briefly rose above $85,000 after the latest inflation data eased concerns about another US Federal Reserve rate hike. However, analysts pointed to strong economic growth and still-high bond yields as factors keeping pressure on risk assets.

'Crypto markets remain caught between improving inflation signals and a still-restrictive macro backdrop,' said Riya Sehgal, Research Analyst at Delta Exchange.

Nischal Shetty, Founder of WazirX, said easing US inflation and improving economic activity were supportive for crypto participation, but elevated US Treasury yields could keep institutional participation selective.

Higher inflation in Australia has also raised the possibility of further monetary tightening there, adding to the mixed global backdrop.