Bitcoin Falls to $83,500 as US Real Yields Surge
On September 23, Bitcoin plummeted to $83,500 as US real yields surged. The 10-year Treasury yield jumped by 15 basis points, with most of this move attributed to a rise in the 10-year real yield from 2.63% to 2.76%. This increase indicates that investors are demanding higher inflation-adjusted returns on government debt, which raises the opportunity cost of holding Bitcoin.
The trigger for this repricing came from S&P Global's September Purchasing Managers' Index, which showed stronger business activity, leaving the Federal Reserve less room to ease monetary policy. The 10-year Treasury yield climbed within minutes of the PMI release and settled at 5.11% by the end of the day.
Bitcoin's decline was accompanied by $280 million in long liquidations as the price broke below $84,000, according to CoinGlass. However, Glassnode notes that Bitcoin still sits above its short-term holder cost basis and above the True Market Mean at $77,000.