Bitcoin Below $85K as Rising Yields and Economic Data Weigh on Crypto
Bitcoin's price dropped below $85,000 on September 24 after a 3% decline over the past 24 hours. The cryptocurrency was affected by rising US Treasury yields, stronger economic data, and long liquidations. According to CoinGecko, Bitcoin traded near $84,300 at the time of writing.
The selloff was triggered by a combination of factors, including the increase in US Treasury yields after S&P Global's flash composite purchasing managers' index climbed to 58.4 in September. The reading was the highest since July 2021, and it led to expectations for tighter US monetary policy.
Traders were already leaning towards another Federal Reserve rate rise in October as policymakers maintained a hawkish stance. The 10-year Treasury yield subsequently climbed above 5.1%, reaching its highest level since 2007.
The selling pressure on Bitcoin was also fueled by leveraged positions being forced out of the crypto derivatives market, with liquidation data showing roughly $524 million in positions were liquidated over 24 hours, with longs accounting for close to $454 million.