Bitcoin Selloff Continues as Treasury Yields Climb

The price of Bitcoin dropped around 4% from its recent peak near $87,000 to an intraday low of approximately $83,200 on September 23-24. This decline was triggered by a batch of US economic data that exceeded Wall Street's expectations, causing the 10-year Treasury yield to climb to between 5.11% and 5.13%, its highest level since 2007.

The S&P Global flash composite PMI printed at 58.4, its strongest reading since July 2021, while oil prices crossing the $100 mark further fueled inflation concerns. Federal Reserve Governor Michael Barr reinforced the hawkish mood, indicating that additional rate hikes could still be on the table.

Despite enormous institutional demand, with US spot Bitcoin ETFs recording net inflows exceeding $2.3 billion over four consecutive trading days leading into the decline, the marginal price of Bitcoin was set by macro traders reacting to yields and dollar moves, not long-term allocators building positions through regulated products.