Bitcoin fell 2.3% to start the fourth quarter as surging Treasury yields overshadowed a soft U.S. inflation print and a strong third-quarter rally. Altcoins from Ether to Dogecoin gave back gains alongside it, while technical charts show the coin stuck between roughly $82,555 and $85,600.
Bitcoin fell 2.3% to $83,570 by 9:20 a.m. ET Thursday, opening the fourth quarter on a weaker footing after a rally built on hopes for friendlier U.S. regulation drove heavy buying through the third quarter.
Treasury yields erase a PCE-driven bounce
Prices had climbed as high as $85,600 on Wednesday after a U.S. PCE inflation print came in a shade below expectations, raising hopes the Federal Reserve would need fewer rate hikes. But Treasury yields hit fresh multi-year peaks that same day despite the soft inflation data, cutting the advance short.
Optimism around artificial intelligence, stoked by blowout earnings from chipmaker Micron, also pulled flows toward tech stocks and away from crypto. Traders are now watching Friday's nonfarm payrolls report for August for clues on rates. Dovish comments from a Fed official this week dulled bets on an October hike.
Altcoins give back Q3's biggest gains
The pullback spread across altcoins that had outpaced bitcoin over the prior three months. Ether slipped 1.6% to $2,682, having surged roughly 70% in Q3. XRP lost 3.9% and Solana fell 4.5%.
Cardano and BNB followed, down 3.6% and 1.2% respectively. Memecoins moved the same way as Dogecoin dropped 3.9% and $TRUMP fell 2.8%.
Technicals point to a market stuck in range
Bitcoin's price held support near $83,130 on Thursday after another rejection below $84,360, Bitcoin.com's technical read of the daily chart showed. Moving averages logged 13 bullish readings versus zero from oscillators, with the report noting bitcoin needs a daily close above $85,600 or below $82,555 to break its two-week range.
Separately, InvestingLive noted bitcoin traded just below its 100-hour moving average at $83,721 and 200-hour moving average at $84,013 Thursday, after a rally a day earlier briefly pushed the price above both levels to its highest since September 23 before reversing. The outlet said a sustained break below the $81,517–$82,833 support area would open the door toward $79,500–$80,200, while reclaiming both moving averages could put the September high near $87,374 back in play.
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