Bitcoin's Inflation Bounce Fades as Bond Yields Refuse to Fall

Bitcoin's recent surge to $85,500 on softer-than-expected U.S. inflation news has fizzled out as bond yields refuse to fall.

The 10-year Treasury yield is near its highest level since 2002 at around 5.28%, while the 30-year yield is close to its peak at 5.62%.

Despite the relief signal from the inflation report, which showed prices up 3.4% from a year earlier and 3.0% excluding food and energy, investors remain cautious about the Fed's next move.

Dan Khus, chief analyst at LVRG Research, noted that 'a sustained drop in [the] yield is the move that would give the next rally room to hold.'