Bitcoin Price Plunges Below $84,000 as Strong US Business Data Sends Yields Soaring
Bitcoin's price surge came to an abrupt halt on Wednesday after a stronger-than-expected US business activity report sent Treasury yields higher, causing BTC USD to fall below $84,000 about an hour after the data was released.
The US Purchasing Managers' Index (PMI) rose to 58.4 in September, its fastest growth since July 2021, while input costs jumped at their fastest pace since October 2022 due to rising fuel and transport costs.
According to S&P Global's chief business economist Chris Williamson, firms' input costs have 'jumped in September at the steepest rate for four years,' which will add further pressure on selling prices and inflation in the coming months.
The 10-year US Treasury yield climbed to 5.058%, making assets without interest, like Bitcoin, less attractive. The Federal Reserve raised its benchmark interest rate to 3.75% to 4% on September 16, aiming for a return to 2% inflation.