Bond Yields Dampen Bitcoin's Rally Amid Whale Accumulation

Bitcoin's (BTC) price rally to $85,500 has faded as bond yields remain near their highest levels since 2002. The move came after a softer-than-expected U.S. inflation report, which saw prices rise 3.4% from a year earlier and core prices increase 3.0%. This data lowered the odds of another Fed rate hike in October, with markets now seeing December as more likely.

The 10-year Treasury yield traded around 5.28%, close to Wednesday's peak, while the 30-year yield steadied at 5.62% after touching its highest level since 2002. This has pushed investors away from risk, according to K33 analyst Vetle Lunde.

Whale wallets holding between 10-10K BTC have added 41,025 BTC in the past 10 days, lifting their combined balance to 13.64 million BTC or 67.93% of total supply, according to Santiment Intelligence data. This group is back to its highest holdings since the mid-August rally.