Key Takeaways
- BTC surged to $85,500 following a softer U.S. PCE inflation reading before retreating to $83,700.
- Bond yields remained elevated near 2002 peak levels, capping further upside momentum.
- Mid-sized wallets holding 10-10K BTC accumulated 41,025 BTC over a 10-day span, according to Santiment.
- Technical analyst Ted Pillows warned of potential downside to the upper $70,000 range before continuation.
- Ether is tracking toward a nearly 70% quarterly gain, with XRP up more than 40%.
Bitcoin edged 0.4% higher to reach just above $83,700 during Thursday’s Asian trading session. This modest advance followed Wednesday’s volatility, when milder-than-anticipated U.S. inflation figures briefly drove the cryptocurrency to $85,500.
August’s Personal Consumption Expenditures (PCE) index revealed annual price growth of 3.4%. The core metric, which strips out volatile food and energy components, registered a 3.0% year-over-year increase.
Dan Khus, who serves as chief analyst at LVRG Research, noted that the figures reduced expectations for an October interest rate increase by the Federal Reserve. According to his assessment, market participants now view December as the more probable timing for the next policy adjustment.
“Digital asset markets interpreted this as a positive development,” Khus explained. Bitcoin rebounded above the $85,000 threshold as government bond yields declined.
However, the upward momentum proved short-lived. Late-session Wall Street trading activity reversed most of the earlier appreciation.
Bond Market Pressure Persists Despite Inflation Cooldown
The benchmark 10-year Treasury note yielded approximately 5.28%, hovering near Wednesday’s session high. The 30-year bond maintained a 5.62% yield after reaching its loftiest point since 2002.
Declining crude oil prices provided temporary respite to the fixed-income selloff. Meanwhile, the U.S. dollar gained strength relative to major foreign currencies.
Vetle Lunde, an analyst at K33, observed that climbing yields are “driving capital away from speculative assets.” He emphasized that bitcoin remains in consolidation mode following its strongest weekly settlement since January.
Alternative cryptocurrencies displayed varied performance. HYPE topped the gainers list with a 3% advance to approximately $89. DOGE climbed nearly 2% to approach 10 cents.
Ether, BNB, TRX, and ZEC each registered sub-1% increases. XRP remained unchanged at $1.50, while SOL declined roughly 1% to settle just below $119.
Technical analyst Ted Pillows referenced a historical chart configuration from early 2023. He suggested bitcoin experienced significant downside correction during that period after validating its cycle low, and comparable dynamics might push current prices into the upper $70,000 territory before resuming upward movement.
Institutional Addresses Accumulate While Small Holders Remain Steady
Santiment Intelligence monitored transaction patterns among mid-tier bitcoin addresses. The analytics platform documented that wallets containing between 10 and 10,000 BTC accumulated 41,025 BTC across a 10-day window, pushing their aggregate holdings to 13.64 million BTC—representing 67.93% of circulating supply.
According to Santiment, this cohort has returned to peak accumulation levels last observed during August’s mid-month rally. Conversely, the smallest retail addresses holding under 0.01 BTC demonstrated minimal activity throughout the identical timeframe.
Iliya Kalchev, who analyzes markets for Nexo Dispatch, identified signs of profit realization appearing in broader market segments. He highlighted that seven-day alternative cryptocurrency exchange deposits climbed to their most significant volume since October 2025.
Ether changed hands near $2,700 and remains positioned for approximately 70% quarterly appreciation. XRP appears set to conclude the quarter with gains exceeding 40% despite its recent pullback to $1.50.
Technology equities exhibited comparable risk-appetite sentiment entering Asian market hours. Japan’s Nikkei index surged 2.7% while South Korea’s Kospi advanced 1.2% following optimistic guidance from Micron Technology.
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