Bitcoin opened the fourth quarter lower after a strong third-quarter run, as surging Treasury yields pressured prices despite a softer-than-expected inflation print. Altcoins also retreated, giving back some of their outsized Q3 gains.
Bitcoin was down 2.3% at $83,570 by 09:20 ET on Thursday, after logging bumper gains in the third quarter as optimism over friendlier U.S. regulations sparked a sustained wave of bargain buying. But the rally ran out of steam going into the fourth quarter, as surging Treasury yields pressured prices with markets bracing for more interest rate hikes by the Federal Reserve.
Soft inflation data offers brief relief
Bitcoin rose as high as $85,600 on Wednesday after U.S. PCE price index data read a shade below expectations. The print spurred some hopes that cooling inflation will invite fewer interest rate hikes from the Fed.
However, Bitcoin's gains were in part quashed by surging Treasury yields, which hit fresh multi-year peaks on Wednesday despite the soft inflation print. Optimism over artificial intelligence, following blowout earnings from Micron, also drove flows toward tech and chipmaking stocks, pressuring crypto prices.
Payrolls data and Fed commentary in focus
Focus is now on upcoming U.S. nonfarm payrolls data for August, due on Friday, for more cues on interest rates and the world's largest economy. Bets on an October interest rate hike were dulled by some dovish commentary from a Fed official this week.
Altcoins give back part of their Q3 outperformance
Broader crypto prices also retreated on Thursday, with major altcoins extending losses after greatly outpacing Bitcoin over the past three months. Ether slipped 1.6% to $2,682 after surging some 70% in Q3. XRP lost 3.9% and Solana fell 4.5%, and Cardano lost 3.6% and BNB was down 1.2%.
Among memecoins, Dogecoin dropped 3.9%, while $TRUMP fell 2.8%.
Source: Cryptocurrency News (Investing.com)
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