Bitcoin gave back ground on Thursday following an outsized third-quarter advance, pressured as U.S. Treasury yields climbed and markets weighed the prospects for additional Federal Reserve tightening.
By 09:20 ET, Bitcoin was trading down 2.3% at $83,570. The cryptocurrency had earlier reached an intraday peak of about $85,600 on Wednesday after the U.S. personal consumption expenditures price index printed slightly below expectations - a reading that briefly raised hopes for a lighter path of Fed rate increases. Nonetheless, rising Treasury yields, which struck fresh multi-year highs on Wednesday, limited further upside for the digital asset.
Market participants also redirected capital toward technology and chipmakers after strong quarterly results from Micron, boosting optimism around artificial intelligence and creating headwinds for crypto prices as flows shifted.
Investors are now focused on U.S. nonfarm payrolls for August, due on Friday, for additional signals on the interest rate outlook and the strength of the world’s largest economy. Earlier in the week, some dovish remarks from a Fed official damped bets on an October rate increase, but broader rate expectations remain a central driver of market positioning.
Stablecoin launch backed by major payments firms
A payments industry-backed stablecoin, OpenUSD - issued by a group called Open Standard - went live on Wednesday. The project was initially announced in June and has launched on Ethereum, Solana, Coinbase’s Base, and Tempo blockchains, according to reporting.
Open Standard’s CEO Zach Abrams said the initiative intends to target banking use cases, cross-border payments, card settlement, institutional trading, and lending. The company counts more than 140 partners across payments, banking, crypto, and technology, including BlackRock, BNY, and Standard Chartered.
Altcoins show mixed moves after strong Q3
Other major cryptocurrencies were mixed on Thursday as investors digested third-quarter returns and shifting market flows. Ether slipped 1.6% to $2,682 after a roughly 70% advance across Q3. XRP fell 3.9% and Solana declined 4.5%. Cardano lost 3.6% while BNB was down 1.2%.
Among memecoins, Dogecoin dropped 3.9% and $TRUMP fell 2.8% on the session.
What to watch next
- U.S. nonfarm payrolls for August, which may influence rate expectations and Treasury yields.
- Further moves in Treasury yields, given their recent rise to multi-year highs and their apparent influence on crypto prices.
- Sector flows toward AI and semiconductors, which have been highlighted by strong earnings and appear to be drawing capital away from risk assets such as cryptocurrencies.
As markets enter the fourth quarter, the interplay of inflation prints, bond yields, and sector rotation will likely continue to shape crypto price action. For now, Bitcoin remains below the Wednesday intraday peak after a brief surge, and broader market dynamics suggest attention will remain focused on macroeconomic data and real-money flows across asset classes.