Bitcoin Rebounds Above $82K as Bond Yields Cool After Inflation Shock

Bitcoin climbed back above $82,200 on Friday as a sharp retreat in US bond yields eased fears of another Federal Reserve rate hike, giving risk assets room to breathe after two bruising days of inflation-driven selling.

Yields Fall, Crypto Breathes

The 10-year US Treasury yield dropped to 5.09% after touching 5.36% in the wake of Wednesday’s hot September CPI report, according to CoinDesk’s live market coverage. The pullback in yields helped crypto recover alongside US stocks, with the S&P 500 up 0.2% and the Dow Jones climbing more than 1% in late-morning trading. Bitcoin traded around $82,241, up 0.67% over 24 hours per CoinMarketCap data, while Ethereum gained 0.79% to $2,442 and Solana led the major coins with a 1.7% advance.

Rate-Hike Odds Cool — For Now

Markets have sharply repriced the chance of a Fed rate increase at the October 28 meeting. After spiking to nearly 47% following the inflation data, the odds of a hike have eased back to roughly 26% on CME’s FedWatch tool as yields retreated and equities stabilized. Attention now turns to remarks from Fed Chair Kevin Warsh due tonight.

Asia’s Rout Leaves Scars

The rebound follows a rough session in Asia, where South Korea’s Kospi plunged 8% and triggered circuit breakers as chip giants Samsung and SK Hynix tumbled. Bitcoin had slipped to just above $80,000 in early Asian trading before buyers stepped in. Gold rose more than 1% to reclaim $4,150 an ounce, while the US Dollar Index held above 102. The takeaway: with the $80,000 level holding as support and $82,500-$83,000 as the first resistance band, the next big move likely comes from macro headlines, not crypto-native catalysts.

Source: CoinDesk, CryptoCompass