Treasury Yields Surge, Sending Bitcoin Below $84,000

Bitcoin's rally was short-lived as it fell below $84,000 due to stronger-than-expected U.S. economic data and a sharp rise in Treasury yields.

The September U.S. economic data released on Sept. 23 beat market expectations, snapping Bitcoin's recent rally. The U.S. 10-year Treasury yield climbed above 5%, nearing its highest level since 2007, while the two-year yield touched its highest in about 27 months.

As a result of the stronger economic growth and mounting price pressures, expectations grew that the Federal Reserve could keep interest rates higher for longer. This led to broad long liquidations, sapping the rally's momentum.