During Asian morning hours on Thursday, Bitcoin advanced 0.4% to trade slightly above $83,700. A milder-than-anticipated United States inflation update had previously pushed the asset up to $85,500 on Wednesday, though these advances receded as Treasury yields remained close to levels not seen since 2002.
Among major tokens, HYPE paced the market with a 3% increase to roughly $89, while DOGE climbed close to 2% to stay just under 10 cents. Ether, BNB, TRX, and ZEC each registered gains below 1%, whereas XRP remained unchanged at $1.50. Conversely, SOL lagged behind, dropping nearly 1% to fall just short of $119, based on metrics from CoinDesk.
“The PCE figures for August demonstrated that inflation moderated more than anticipated, showing a 3.4% annual increase in overall prices and a 3.0% rise when excluding energy and food. This outcome lowers the probability of another interest rate hike by the Federal Reserve in October, shifting expectations toward December as the more plausible timing for their next action,” explained Dan Khus, principal analyst at LVRG Research, in an email to CoinDesk.
He further noted, “Digital asset markets interpreted this data as a positive relief signal, propelling bitcoin back past $85,000 as bond yields dipped and investors regained confidence to purchase risk-oriented assets.”
Subsequent market shifts on Wall Street wiped out those earlier gains. The 10-year Treasury yield hovered around 5.28%, staying near the high point recorded on Wednesday. Meanwhile, the 30-year yield stabilized at 5.62% following a climb during New York trading sessions to its highest mark since 2002. A drop in oil prices assisted in halting the broader bond selloff, while the U.S. dollar gained strength.
Technology sectors propelled the positive sentiment into Asian trading hours. Nasdaq 100 futures advanced 0.8%, and S&P 500 futures grew 0.4%. In Japan, the Nikkei surged 2.7%, and South Korea’s Kospi increased 1.2%, supported by strong guidance from Micron Technology that boosted semiconductor equities.
Additionally, Alphabet shares rose 1.5% during extended trading as Google commenced the rollout of Gemini 4 Argon, its newest flagship artificial intelligence model.
Ultimately, a favorable inflation reading alone proved insufficient to maintain bitcoin above the $85,000 threshold while the 10-year yield lingered near 5.3%. A consistent decline in that specific yield remains the necessary catalyst to provide future price rallies with lasting momentum.
Originally published at https://www.coindesk.com/markets/2026/10/01/bitcoin-s-soft-inflation-pop-to-usd85-500-fades-as-bond-yields-refuse-to-fall.
