Bitcoin Stalls at $83,000 as Long-Term Yield Pressure Offsets Cooling Inflation

Bitcoin struggled for direction around the $83,000 level as rising long-term Treasury yields offset a favorable U.S. inflation reading. While softer-than-expected inflation reduced the odds of additional Federal Reserve tightening, the 10-year yield's climb to 5.3% suppressed risk appetite across asset classes.

As of 8:57 a.m. on the 1st, Bitcoin was trading at $83,531.99 on CoinMarketCap, down 0.11% over the prior 24 hours. The cryptocurrency had surged to $85,581 around 10 p.m. the previous evening, breaching the $85,000 mark, but failed to sustain the momentum and retreated back to the $83,000 range. While the day-over-day change was modest, overnight price action showed repeated rallies and reversals, underscoring elevated volatility.

Major altcoins traded mixed. Ethereum (ETH), the second-largest cryptocurrency by market capitalization, rose 0.24% to $2,683.14. Ripple (XRP) slipped 0.09% to $1.48, while Solana fell 0.84% to $118.00. Binance Coin (BNB) gained 1.12% to $769.49, and Hyperliquid jumped 5.4% to $91.11.

The rebound catalyst came from U.S. inflation data. On the 30th (local time), the U.S. Bureau of Economic Analysis (BEA) reported that the August Personal Consumption Expenditures (PCE) price index rose 3.4% year-over-year, below the 3.7% consensus estimate compiled by Dow Jones. The PCE is the Fed's preferred inflation gauge for monetary policy decisions, and the softer-than-expected reading fueled market expectations that the central bank is less likely to hike rates again in October.