Bitcoin tops $84,000 as US bond yields retreat from multidecade highs

Bitcoin rose above $84,000 around Thursday's Wall Street open, during the first US trading session of October. TradingView data showed BTC/USD up 0.6% on the day and maintaining a pattern of higher lows on hourly charts. US 30-year and 10-year bond yields both reached new multidecade highs. The 10-year yield reached 5.342%, a level last seen in April 2002, before falling to 5.251% at the time of writing. Mahmood Pradhan, a former International Monetary Fund deputy director, said markets worldwide were nervous about mounting public debt because rising yields increase governments' interest costs. Pradhan said the Middle East war had changed the outlook and that higher oil prices were already appearing in inflation data. The August US Personal Consumption Expenditures index rose 3.4% year on year, below expectations. Markets showed little reaction to the softer reading, and analysts attributed much of the decline to a change in how the index was calculated. Crypto analyst Benjamin Cowen said yields had risen rapidly since markets became concerned that the Federal Reserve was no longer taking inflation seriously. Cowen said the bond-market sell-off would likely continue until the Federal Reserve brought inflation under control. Bitcoin traded between thickening exchange order-book liquidity above and below its spot price. CoinGlass data identified $84,500 and $82,900 as key liquidity areas at the time of writing, either of which could attract the price. Liquidations totaled $25 million over the preceding 24 hours as nearby long and short positions helped keep Bitcoin within a trading range. Trader and analyst Rekt Capital forecast a fresh dip toward support around $82,500. Rekt Capital said a successful retest could set up a continuation of the trend, although the retest could be volatile. Rekt Capital had previously said Bitcoin's broader rebound depended on buyers holding $82,500 as support.