Bitcoin Falls Below $84,000 as Macro Data Triggers Market Concerns
Bitcoin's price plummeted by around 3% on September 24 as it broke below the $84,000 level, reaching a low of $83,777. The sudden decline came after stronger-than-expected macroeconomic data showed that the preliminary U.S. Composite Purchasing Managers' Index (PMI) for September climbed to 58.4, far exceeding the expected 55.3.
The positive economic data sparked market concerns that the Federal Reserve might delay interest rate cuts or keep rates higher for longer, triggering a cross-market decline in risk appetite. This led to a rise in U.S. Treasury yields to near 5.11%, making non-yielding assets like Bitcoin less appealing and putting downward pressure on prices.
The rapid price drop triggered a massive wave of stop-losses and forced liquidations among highly leveraged long positions, with $145 million in long positions liquidated in the Bitcoin derivatives market over the past 24 hours. This further intensified short-term downward pressure on the asset's price.