Bitcoin traders bet borrowed money on a rally as oil surges ahead of Friday’s inflation test

Bitcoin is holding above $78,000 as Brent crude breached $100 and rising Treasury yields revived inflation fears.Data from CryptoSlate showed the flagship cryptocurrency trading around $78,451 at press time, with little sign of the pressure spreading across bond and energy markets after an escalation in the Middle East pushed Brent above the threshold for the first time since July 24.Brent touched $100.19 before easing slightly, extending a roughly 25% advance since early August as attacks on shipping and energy infrastructure raised fresh concerns about supplies through the Strait of Hormuz and Red Sea. The US 10-year Treasury yield climbed toward 4.81% as investors weighed the inflationary consequences of another surge in energy costs.Mohamed El-Erian, the chief economic advisor at Allianz, said Brent's move above $100 has sharpened focus on the economic, political and social consequences of higher US gasoline prices. He also pointed to the accompanying rise in bond yields.That combination has historically been difficult for Bitcoin. Higher oil prices can reinforce inflation, reduce the Federal Reserve's room to ease and push real yields higher, increasing the relative appeal of ...