Bitcoin Sinks Below $85K as 10-Year Treasury Yield Stays Above 5%
Bitcoin's price plummeted below $85,000 on Friday as investors took cues from the 10-year Treasury yield staying above 5%.
The Treasury yield has been a major concern for risk assets sensitive to interest-rate expectations, and Bitcoin is no exception. The crypto asset's Sept. 25 daily price was $84,206.03, with a high of $84,861.13 and a low of $84,047.88.
The move coincided with stronger U.S. business activity, as the flash U.S. Composite PMI rose to 58.4 in September from 56.0 in August. This marks its strongest reading since July 2021.
Resilient growth and continued price pressures can reduce expectations for near-term monetary easing. Higher Treasury yields also increase the return available from conventional dollar assets, raising the relative hurdle for speculative investments such as Bitcoin.