Bitcoin (BTC) rose above $84,000 on Thursday as US bond yields fell after reaching multi-year highs. The yield on 10-year bonds hit 5.342% — the highest since April 2002 — before dropping to 5.251% at the time of writing. Data from TradingView shows that BTC/USD maintains a pattern of higher lows, increasing by 0.6% for the day. Markets are concerned about rising government debt, and as Mahmoud Pradhan, former deputy director of the IMF's European Department, noted, "the war in the Middle East has really changed everything," with high oil prices already reflected in inflation data.
According to the report, August's Personal Consumption Expenditures (PCE) data, a favorite inflation indicator of the Federal Reserve, came in below expectations at 3.4% year-over-year. However, markets reacted minimally to this change; analysts attribute the decline to changes in the way PCE is calculated. Crypto analyst Benjamin Cowen noted that "yields have risen rapidly since the market began to worry that the Fed no longer takes inflation seriously," adding: "The bond market has revolted, and as long as the Fed does not get inflation under control, this is likely to continue."
Based on the current market situation, trader and analyst Rect Capital predicts a retest of key support around $82,500. He stated: "A successful retest there could establish the continuation of the next trend. History shows that this retest can be tricky, but let's take it step by step and not get ahead of ourselves." In the last 24 hours, liquidations totaled $25 million, helping to maintain range-bound conditions, with key levels of interest according to CoinGlass at $84,500 and $82,900.
Related articles
