Strong Business Report Sinks Bitcoin Below $85K
Bitcoin's price retreated to $84K on Wednesday after a strong U.S. business activity report revealed hotter-than-expected growth.
The S&P Global U.S. PMI Composite preliminary reading jumped to 58.4 in September, surpassing the consensus of 56.0. The manufacturing component rose to 57.0, exceeding expectations, and the services component topped the consensus at 56.0.
This stronger-than-expected data led to a surge in bond yields as investors anticipated higher interest rates from the Federal Reserve. The 10-year Treasury yield jumped 14 basis points to 5.11% in Wednesday trading.
The increased probability of a rate hike is now at 66.4%, up from 55.4% on Tuesday, according to the CME FedWatch tool. This shift in market sentiment weighed on cryptocurrency prices, with Bitcoin easing 2.2% over the past 24 hours to $84.3K.