Bitcoin Dives Below $84,000 on Rising Yields and Strong Economic Data
Bitcoin's price dropped below $84,000 on September 24 as investors reacted to rising US Treasury yields and stronger-than-expected economic data. The cryptocurrency had been trading near $87,300 earlier in the week but reversed its gains due to increased risk aversion.
The 10-year Treasury yield climbed to 5.11%, its highest level since 2007, after a report showed that US business activity was stronger than expected. This rise in yields reduced expectations for lower interest rates, making high-risk assets like Bitcoin less attractive.
Oil prices also contributed to concerns about inflation and interest rates, with Brent crude rebounding above $100 a barrel. Higher energy prices could keep inflation pressures elevated and make it harder for central banks to ease monetary policy.