Bitcoin Holds $84K as US Bond Yields Retreat From 2002 Highs

Bitcoin pushed above $84,000 on Thursday as US bond yields retreated from multidecade highs, with the 10-year yield briefly touching 5.342% — a level not seen since April 2002 — before falling to 5.251%. The yield reversal coincided with Bitcoin preserving a pattern of higher lows on hourly time frames, with BTC/USD up 0.6% on the day. The 30-year yield also set fresh macro highs before pulling back, reflecting broader nervousness across global debt markets.

The bond market sell-off has been driven by mounting concerns over public debt and persistent inflation pressures, according to Mahmood Pradhan, former deputy director of the European department at the International Monetary Fund. Pradhan told the New York Times that markets are "very nervous" about rising government interest costs, while geopolitical tensions in the Middle East and elevated oil prices have further complicated the inflation outlook. The August US Personal Consumption Expenditures (PCE) index came in below expectations at 3.4% year-on-year, but analysts noted much of the decline stemmed from a change in calculation methodology rather than genuine disinflation.

Crypto analyst Benjamin Cowen told X followers that the bond market has effectively "revolted" against the Federal Reserve's perceived complacency on inflation. "Yields have gone up rapidly since the market became concerned that the Fed was no longer taking inflation seriously," Cowen said, adding that the trend is likely to persist until the Fed regains control of price stability. Despite the macro headwinds, Bitcoin traded within a tightening range, with CoinGlass data identifying $84,500 and $82,900 as key liquidity magnets. Approximately $25 million in liquidations over the past 24 hours reflected balanced long and short positioning.

Analyst Rekt Capital warned that Bitcoin is due a "messy" retest of $82,500 as the market digests competing forces of softening inflation data and aggressive bond selling. With thickening liquidity on both sides of the spot price, traders are watching for a decisive break that could establish direction heading into the fourth quarter. The interplay between Treasury yields and risk assets like Bitcoin remains the dominant narrative shaping near-term price action.