Bitcoin Tumbles Below $84,000 as Treasury Yields Surge

A surprise jump in US business activity sent Treasury yields higher on Wednesday, causing Bitcoin to tumble below $84,000. The S&P Global flash Purchasing Managers’ Index (PMI) rose to 58.4 from 56.0, its fastest growth since July 2021, pushing the 10-year Treasury yield back above 5.058%.

The surge in yields and higher input costs made non-yielding crypto assets like Bitcoin less attractive, creating short-term downside pressure on crypto markets.

According to Chris Williamson, chief business economist at S&P Global Market Intelligence, firms' input costs have jumped in September at the steepest rate for four years, with fuel and transport costs spiking higher due to rising oil prices.