Bitcoin's soft-inflation pop to $85,500 fades as bond yields refuse to fall

Bitcoin’s initial rally to roughly $85,500 on softer inflation data faded as Treasury yields remained elevated, limiting risk appetite. The market appears to view the inflation improvement as insufficient to materially change interest-rate expectations or prompt near-term easing. Persistent yields and reduced expectations for monetary-policy support remain a headwind for Bitcoin, leaving its recovery vulnerable to further pullbacks.