Bitcoin briefly moved above $85,000 after the latest inflation data eased concerns about another US Federal Reserve rate hike.
The move later lost momentum, with analysts pointing to strong economic growth and still-high bond yields as factors keeping pressure on risk assets.
“Crypto markets remain caught between improving inflation signals and a still-restrictive macro backdrop,” said Riya Sehgal, Research Analyst at Delta Exchange.
She said the next major trigger for the market would be US jobs data, as it could influence expectations around interest rates and Treasury yields.
Nischal Shetty, Founder of WazirX, said easing US inflation and improving economic activity were supportive for crypto participation. At the same time, he pointed to elevated US Treasury yields as a factor that could keep institutional participation selective.
Higher inflation in Australia has also raised the possibility of further monetary tightening there, adding to the mixed global backdrop.
Institutional flows have offered a mixed picture. US spot Bitcoin ETFs saw net outflows in the latest session, while Ethereum ETFs also recorded withdrawals.
However, Vikram Subburaj, CEO of Giottus, noted that Bitcoin ETFs had seen strong inflows through September, helping support the recovery, even as spot demand has moderated more recently.
Bitcoin also outperformed some traditional assets during September.
Minal Thukral, Executive VP–Growth & Crypto Business Head at CoinDCX, said Bitcoin gained about 7% during the month, while stocks posted a much smaller rise and gold declined.
The broader crypto market was mixed on October 1. Ethereum was trading around $2,700, while other large tokens including BNB, XRP and Solana remained active. Solana has also attracted institutional interest through US spot ETF flows, according to Subburaj.
There was stronger action in parts of the altcoin market. Midnight and Stacks were among the notable gainers, while some tokens including LayerZero and Sky declined. CoinDCX also highlighted developments across Avalanche, Chainlink and Hyperliquid, showing that activity remained spread across different parts of the crypto market.
Market sentiment remained in the greed zone, according to the Crypto Fear and Greed Index. Global markets were also mixed, with Asian equities largely positive while US stocks ended unevenly. Oil prices eased, offering some relief on the inflation front, while gold was largely steady.
For the near term, analysts are watching US jobs data, inflation, Treasury yields and institutional flows for signs of how risk appetite could evolve.
Avinash Shekhar, Co-Founder and CEO of Pi42, said Bitcoin’s ability to sustain levels above the recent support zone would be important, while also noting that monetary policy expectations and broader market sentiment remain key drivers.