Bitcoin Tumbles Below $85K as Strong US Growth Crushes Crypto Market

Bitcoin's recent surge came to an abrupt end on September 23 as it fell below $85,000.

The decline was triggered by stronger-than-expected US business activity, which sent Treasury yields higher and led to a massive liquidation of leveraged long positions in the crypto market.

A total of $135.8 million worth of crypto positions were liquidated within an hour, with Bitcoin accounting for $47.4 million of the losses and Ether losing $23.9 million.

The sell-off reflected the rapid shift in the interest rate environment, which has become increasingly hostile to risk assets.

According to Chris Williamson, chief business economist at S&P Global Market Intelligence, US growth is accelerating, with annualized economic growth of about 5% expected, and roughly 4% growth signaled for the third quarter overall.