Bitcoin slips under $84,000 as US PMI lifts Treasury yields
Bitcoin fell below $84,000 after S&P Global’s September flash PMI rose to 58.4, pushing the 10-year Treasury yield above 5% and undoing a morning rally.
Bitcoin slipped below $84,000 on Wednesday after S&P Global’s September flash PMI unexpectedly rose to 58.4, sending the US 10-year Treasury yield above 5% and reversing an earlier rally that took the price above $87,000.
The S&P Global flash PMI, an early survey of about 1,150 US firms, showed composite business activity accelerating to 58.4 from 56.0 in August, the fastest pace since July 2021. The manufacturing reading rose to 57.0 from 53.9. The report said input prices climbed at the fastest rate since October 2022 and hiring matched its quickest pace since June 2022. Chris Williamson, chief business economist at S&P Global Market Intelligence, wrote that higher fuel and transport costs will add upward pressure to selling prices and inflation in the coming months.
Markets reacted quickly. The 10-year Treasury yield moved to about 5.058% shortly after the PMI release, up from a 4.96% close on Tuesday. Higher Treasury yields tend to reduce the appeal of assets that do not pay interest. The Federal Reserve raised its benchmark rate to a 3.75%–4% range on Sept. 16.
Price data showed Bitcoin failing to hold a break above $87,000 before falling to local lows below $84,000 around the Wall Street open. Liquidation trackers recorded roughly $280 million in long liquidations over about four hours. Market analysis identified near-term support around $82,000.
On-chain analytics firm CryptoQuant reported cumulative 30-day apparent spot demand at about negative 180,000 BTC as of Tuesday, indicating supply outpaced demand over that period. CryptoQuant noted the negative value narrowed slightly while futures demand increased and added that sustained momentum could flip spot demand positive.
US spot Bitcoin exchange-traded funds have an aggregate cost basis just below $86,000. Final readings for September PMIs are due Oct. 1 for manufacturing and Oct. 5 for services; investors will watch those releases and Treasury yields for signals on rate expectations and asset demand.
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