Live updates: Bitcoin slips as higher rates and dollar pressure markets

Bitcoin briefly revisited levels near $87,300 before sellers stepped in and prices dipped across the crypto complex. Intraday snapshots in the reporting period showed bitcoin down modestly, with one update noting a 2.25% slide to below $84,000 and later trading near $85,800; the market is also approaching a roughly $18 billion quarterly options expiry around $85,000 due Friday, a potential source of near-term volatility as traders roll positions.

Altcoins outperformed bitcoin over recent sessions. Bitwise's Altseason Index climbed to 90%, indicating nine in 10 tracked altcoins beat bitcoin over the prior seven days. Specific movers included bitcoin cash, which jumped 28% after its listing on CME futures, and Zcash, which added about 9%. Bitwise also reported that altcoin ETPs (excluding ether) drew about $166 million in inflows, their largest weekly intake of the year.

Broader risk markets weakened as global interest rates and the U.S. dollar moved higher. The U.S. 10-year Treasury yield rose toward 5.06%, a near 20-year high in one report, while the two-year yield and yields across Europe also climbed. The dollar index strengthened to its highest level since late July. Equities reflected the rate pressure: the Nasdaq was reported down roughly 1.15% at one point, led by losses in large-cap tech names.

Commodities and macro data provided additional context: WTI crude traded higher in the session (one update noted $92.10 per barrel, another $90.93 after a late rebound), and S&P Global manufacturing and services PMIs surprised to the upside in preliminary readings for September. Analysts and strategists cited the recent Fed rate decision and evolving expectations for policy as background for both the crypto rally earlier in the month and the renewed caution as rates pushed higher.