Bitcoin’s Soft-Inflation Pop to $85,500 Fades as Bond Yields Defy Expectations

Bitcoin edged up 0.4% to roughly $83,700 during Thursday Asian morning trading. The digital asset had surged to $85,500 on Wednesday following a softer-than-anticipated U.S. inflation report, but the gains dissipated as Treasury yields held near their highest points since 2002.

HYPE outperformed the major cryptocurrencies, climbing 3% to approximately $89, while DOGE rose nearly 2% to just below $0.10. Ether, BNB, TRX, and ZEC each gained less than 1%, and XRP remained stable at $1.50. SOL trailed the group, dropping nearly 1% to just under $119, per CoinDesk data.

“August’s PCE report indicated inflation was cooling more than anticipated, with prices increasing 3.4% year-over-year and 3.0% excluding food and energy. This has lowered the probability of another Federal Reserve rate hike in October and positioned December as the more likely next move,” Dan Khus, chief analyst at LVRG Research, stated in an email to CoinDesk.

“Crypto markets interpreted this as a relief signal, driving bitcoin back above $85,000 as bond yields declined and investors grew more inclined to purchase risk assets,” he added.

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