Bitcoin Rebounds Toward $80,000 Amid Falling Treasury Yields

Bitcoin recovered from an overnight decline toward $80,000 on October 15, briefly climbing back above $81,500 as falling Treasury yields and a weaker US dollar helped stabilize cryptocurrency markets.

BTC touched approximately $80,226 during Asian trading, approaching its lowest level in nearly a month after unexpectedly strong US inflation data triggered another wave of selling. The cryptocurrency subsequently recovered some losses, although the rebound remained fragile amid persistent uncertainty about Federal Reserve interest rates.

The movement comes as Bitcoin ETF outflows continue complicating the market's recovery, with investors questioning whether institutional buying can provide enough support.

Bitcoin's latest rebound followed a volatile period in traditional financial markets, where investors initially responded to stronger inflation by selling risk-sensitive assets.

September's US Consumer Price Index rose 3.7% annually, exceeding expectations of 3.6%. Core inflation reached 2.6%, strengthening speculation that the Federal Reserve could increase interest rates again.

The initial reaction pushed Bitcoin below $81,000 while technology stocks also declined. However, conditions shifted as Treasury yields began retreating and the dollar weakened.

According to Reuters, US government bond yields recorded their sharpest daily decline in more than a year as investors sought relatively safer assets during the global technology selloff.

The weaker dollar and declining yields helped ease some of the pressure on Bitcoin, although neither development guarantees a sustained cryptocurrency recovery.

Meanwhile, the probability of the Federal Reserve holding rates unchanged at its October meeting increased to approximately 75%, suggesting traders had moderated their expectations for immediate tightening.

The latest shift follows a sharp repricing of Fed rate expectations after Wednesday's inflation surprise.

Institutional investment demand remains another major obstacle to a stronger recovery.

US spot Bitcoin ETFs recorded approximately $261.4 million in net outflows on October 14, reversing the previous session's inflows of around $175.7 million.

Those withdrawals followed a difficult period for crypto investment products, with cumulative selling pressure adding to broader concerns about inflation and global financial conditions.

Utkarsh Ahuja, an analyst at Moon Pursuit Capital, warned in comments reported by Barron's that Bitcoin's recent resilience should not automatically be interpreted as evidence of a sustained recovery.

He argued that institutional investment products have expanded access to Bitcoin without guaranteeing consistent demand during periods of market stress.

The immediate question is whether Bitcoin can build on its rebound and recover above the $82,000–$83,000 region.

Market analysts have identified $80,000 as an important psychological support level, with resistance potentially emerging near $83,000 and $84,500.

These levels are potential technical reference points, not guaranteed price targets.

Bitcoin's latest retreat also follows a broader decline from its early-October highs above $87,000. The recent market liquidations highlight how leveraged positions can amplify relatively small price movements.

A sustained recovery above $83,000 could improve short-term sentiment, particularly if ETF flows stabilize and Treasury yields remain lower.

However, another break toward $80,000 could expose Bitcoin to renewed selling pressure, especially if inflation expectations rise again.

For now, the rebound suggests buyers remain active around a major psychological level, but confirmation of a more durable recovery will require stronger demand and improving broader market conditions.