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[BUSINESS] · United States · 19 sources

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Bitcoin falls below $84,000 as US Treasury yields hit 19-year high

Bitcoin and the broader cryptocurrency market experienced a significant pullback, with Bitcoin dropping below the $84,000 and $85,000 levels. This decline was largely driven by stronger-than-expected US economic data. Specifically, the S&P Global composite PMI for September rose to 58.4, its highest level in over five years, signaling robust business activity.

This economic strength pushed US Treasury yields higher, with the 10-year yield reaching an intraday high of 5.13%, its highest level since 2007. The surge in yields increased expectations for sustained high interest rates, reducing the appeal of risk assets like Bitcoin. Consequently, the market saw massive liquidations of leveraged long positions; within one hour of the PMI announcement, approximately $135.8 million in crypto positions were wiped out.

Ethereum also faced downward pressure, trading near $2,675 after failing to maintain a rally toward $2,800. Meanwhile, the US Treasury announced a $6 billion ceiling for a bond buyback program aimed at improving liquidity in long-dated debt.

Entities

Bitcoin · Ethereum · Federal Reserve · S&P Global · US Treasury

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