Bitcoin traded in a narrow range near $84,000 on Thursday, briefly topping $85,500 after a softer inflation report before pulling back as the 10-year Treasury yield touched 5.34% — its highest level since 2002. The cryptocurrency remains caught between supportive crypto-specific demand and a tougher macro rate environment.
Citigroup added to the bullish case by raising its 12-month Bitcoin price target to $113,000, citing stronger exchange-traded fund demand and improving regulatory conditions. That target implies meaningful upside from current levels, but rising borrowing costs continue to create headwinds for risk assets.
The broader market narrative was dominated by artificial intelligence spending. Micron posted strong AI-driven guidance with first-quarter revenue expected near $61.5 billion, far above the roughly $57 billion analysts expected. Customer commitments under long-term supply deals rose to $32 billion, up from $22 billion in June, while remaining performance obligations climbed to about $150 billion. Oracle reportedly reached a $7 billion five-year deal with Tencent for access to about 100,000 advanced AI chips in Southeast Asia data centers, while Synopsys announced agreements with Amazon and OpenAI.
Alphabet also unveiled its Gemini 4 Argon AI model, and Constellation Energy announced a $3 billion nuclear expansion deal with Amazon. These updates reflect continued heavy investment in AI infrastructure, which has supported technology equities and helped offset some pressure from rising bond yields.
For Bitcoin, the key question heading into October is whether ETF inflows and improving regulation can outweigh the drag from higher Treasury yields and tighter financial conditions.
