Bitcoin Slumps as Bond Yields Rise on Strong US Growth

The price of Bitcoin (BTC) fell to $84,255.74 on Wednesday after a strong U.S. purchasing managers' survey drove up bond yields.

The survey showed that manufacturing and services both rose to five-year highs in September, with input costs increasing at the fastest rate since October 2022.

This growth read points to annualized expansion near 5% and a 4% third quarter, which is contrary to the Federal Reserve's expectations and led to a 9.4 basis point jump in the 10-year yield to 5.058%.

The higher yields make holding Bitcoin more expensive compared to bonds, leading to a 2.30% drop in BTC prices.