Bitcoin edges higher as U.S. Treasury yields cool; key support levels in focus

Bitcoin regained the $84,000 level as the recent surge in long-term U.S. Treasury yields eased.

On Oct. 1 (local time), blockchain media outlet Cointelegraph reported that bitcoin traded above $84,000 around the time Wall Street opened. It kept a pattern of higher lows on an hourly basis.

The market was more sensitive to long-term yield moves than to bitcoin's rebound itself. Yields on U.S. 30-year and 10-year Treasuries both fell after hitting new highs on macro indicators. The 10-year yield in particular rose to 5.342 percent, the highest level since April 2002, before falling to 5.251 percent.

Anxiety over bond market selling also persisted. The New York Times reported that Mahmoud Pradhan, a former deputy director at the International Monetary Fund's Europe department, said the market was highly uneasy about rising public debt and that higher yields were increasing governments' interest costs. He also said the war in the Middle East had changed everything and pointed to higher oil prices feeding into inflation readings.

The U.S. personal consumption expenditures (PCE) price index for August rose 3.4 percent from a year earlier, below expectations, but the market reaction was limited. Some analysts saw much of the slowdown as the result of a change in how the indicator is calculated. Benjamin Cowen said yields rose rapidly after concerns grew that the U.S. Federal Reserve was no longer taking inflation seriously.