Key Takeaways
- BTC surged to $85,500 following a softer U.S. inflation reading before retreating to $83,700.
- Bond yields remained elevated near their peak levels from 2002, capping upside momentum.
- Mid-tier holders controlling 10-10K BTC accumulated 41,025 BTC over a 10-day span, according to Santiment.
- Market analyst Ted Pillows suggests BTC could dip into the upper $70,000 range before resuming its uptrend.
- Ethereum is tracking toward a roughly 70% quarterly increase, with XRP posting gains exceeding 40%.
Bitcoin edged up 0.4% to hover just above $83,700 during Thursday’s Asian session. This followed a brief spike to $85,500 the previous day after U.S. inflation figures came in milder than anticipated.
August’s Personal Consumption Expenditures index revealed a 3.4% year-over-year increase in overall prices. The core metric, stripping out volatile food and energy components, climbed 3.0%.
Dan Khus, lead analyst at LVRG Research, noted the figures reduced expectations for another Federal Reserve rate increase in October. Market participants now view December as the more probable timing for the next policy adjustment.
“Digital asset markets interpreted this as a positive development,” Khus explained. Bitcoin rebounded above the $85,000 threshold as Treasury yields temporarily eased.
The upward momentum proved fleeting. By the close of Wall Street trading, most of the advance had evaporated.
Bond Yields Maintain Pressure Despite Cooler Price Data
The benchmark 10-year Treasury yield hovered near 5.28%, just shy of Wednesday’s session high. The 30-year maturity stabilized around 5.62% after reaching levels not seen since 2002.
A decline in crude oil prices helped slow the bond market selloff. Meanwhile, the U.S. dollar gained ground against major currencies.
K33 analyst Vetle Lunde observed that elevated yields are “steering capital away from higher-risk assets.” He emphasized that bitcoin remains in consolidation mode following its strongest weekly close since January.
Alternative cryptocurrencies exhibited mixed performance. HYPE led the gainers with a 3% advance to approximately $89. DOGE climbed nearly 2% to just below the 10-cent mark.
Ether, BNB, TRX, and ZEC each registered modest gains under 1%. XRP remained unchanged at $1.50, while SOL declined almost 1% to settle just beneath $119.
Analyst Ted Pillows referenced a chart formation from early 2023. He suggested bitcoin experienced a pronounced pullback after confirming its cyclical low, and a comparable scenario could drive prices into the upper $70,000s ahead of the next sustained rally.
Institutional-Sized Wallets Continue Accumulation While Retail Remains Inactive
Santiment Intelligence monitored behavior among medium-tier bitcoin holders. The analytics platform documented that addresses containing between 10 and 10,000 BTC accumulated 41,025 BTC across a 10-day window, pushing their collective holdings to 13.64 million BTCārepresenting 67.93% of circulating supply.
Santiment indicated this cohort has returned to holdings levels last observed during August’s mid-month rally. Meanwhile, the smallest retail addresses holding under 0.01 BTC demonstrated minimal activity throughout the same timeframe.
Iliya Kalchev, an analyst with Nexo Dispatch, identified emerging profit-taking signals in other market segments. He highlighted that seven-day altcoin deposit flows to exchanges climbed to their peak since October 2025.
Ether changed hands near $2,700 and remains positioned for approximately a 70% quarterly gain. XRP is tracking to complete the quarter with advances exceeding 40% despite its recent slide to $1.50.
Technology equities carried similar risk-on sentiment into Asian markets. Japan’s Nikkei surged 2.7% while South Korea’s Kospi advanced 1.2% following an optimistic forecast from Micron Technology.
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