Bitcoin Slips Below $85K as Rising Yields Test Momentum
Bitcoin's recent rebound was short-lived as it fell below $85,000 after stronger-than-expected US business data pushed Treasury yields higher. The S&P Global flash U.S. Composite PMI rose to 58.4 in September, the strongest reading since July 2021.
The surge in Treasury yields above 5% is a concern for Bitcoin and other risk assets as it increases the return available on conventional dollar assets and raises the discount rate investors apply to more speculative investments.
Bitcoin's rebound had pushed the cryptocurrency above $87,000, but the pullback towards the mid-$84,000 area shows that the rally is still sensitive to macro conditions. The market has proven that crypto-specific developments and institutional adoption matter, but macro liquidity also plays a significant role.