Bitcoin recovers to $82k but set for second week in red

Bitcoin climbed to $82,130.1 on Friday, reversing recent declines, as U.S. Treasury yields and oil prices dropped, bolstering riskier assets. However, the world's leading cryptocurrency was on track for a second consecutive week of losses, as a recurring October trend—known as "uptober"—did not materialize due to an array of negative influences. Bitcoin climbed 1.9% by 1:48 AM ET (5:48 GMT). It had dipped below $80,000 the previous session before recovering due to bargain hunting.

The broader crypto market also experienced an uptick on Friday, buoyed by some recovery buying, particularly after U.S. Treasury yields experienced two subsequent days of significant declines. Investors continued to expect the Federal Reserve to raise interest rates again this year. Yet, yields slipped as a dire technology sector decline and Bitcoin's downward trajectory led to a weekly loss of about 0.9%.

This marked Bitcoin's second straight week of losses. The leading cryptocurrency also suffered a loss of over 2% thus far in October, as the uptober trend failed to manifest for the second consecutive year.

Bitcoin faced multiple challenges this month, including surging yields, oil price hikes, and increased capital outflows from its spot exchange-traded funds. The unfavorable conditions prompted some profit-taking after Bitcoin achieved impressive gains during the second quarter. Spot Bitcoin ETFs were also set for a second week of outflows, according to SoSoValue data, with approximately $146.2 million in outflows recorded so far this week.

A substantial sell-off in high-flying technology and artificial intelligence stocks also had a ripple effect on crypto markets, as the sector was hit by the expectation of higher U.S. interest rates. Investors' confidence in a rate hike was fueled by September's alarming inflation figures. Higher rates posed a significant threat to speculative, risk-heavy sectors like crypto.

While broader crypto prices mirrored Bitcoin's performance, they too were on track for losses this week. Ether, the second-largest crypto, rose 3.6% to $2,442.72, and was down nearly 2.6% this week. XRP increased by 2.3%, while Solana and Cardano rose by 3.6% and 4.3%, respectively, on Friday. Among the top three, Bitcoin Network (BNB) climbed 1.7% on Friday. Among memecoins, Dogecoin and $TRUMP gained 3.4% and 4.3%, respectively.