Analysis: After Bitcoin surged to $85,500, it fell back as high U.S. Treasury yields suppressed the upward momentum

After the U.S. August PCE inflation data came in below expectations, Bitcoin briefly rose above $85,500, but the rally subsequently retreated due to U.S. Treasury yields remaining high. Dan Khus, Chief Analyst at LVRG Research, stated that the weaker PCE data reduced the likelihood of the Federal Reserve raising interest rates again in October, leading the market to focus more on policy changes in December, which boosted risk appetite in the crypto market.

However, the U.S. 10-year Treasury yield remains close to 5.3%, and the 30-year yield briefly reached its highest level since 2002, limiting Bitcoin's further upside potential. In other crypto assets, HYPE rose about 3% to around $89, DOGE increased nearly 2% to around $0.1; ETH, BNB, TRX, and ZEC saw gains of less than 1%, XRP remained flat at $1.5, and SOL fell nearly 1% to around $119.