Cautious Crypto Market Awaits Next Move on Interest Rates

Bitcoin started October around $84,000 after a stronger September, as softer US inflation data improved sentiment across risk assets.

The broader crypto market remains cautious due to elevated US Treasury yields, mixed institutional flows, and uncertainty over the next move in interest rates.

Riya Sehgal from Delta Exchange noted that 'Crypto markets remain caught between improving inflation signals and a still-restrictive macro backdrop.'

US jobs data is expected to influence expectations around interest rates and Treasury yields, which could be a major trigger for the market.

Nischal Shetty from WazirX stated that easing US inflation and improving economic activity are supportive for crypto participation, but elevated US Treasury yields may keep institutional participation selective.