US Manufacturing Costs Surge Threatens Bitcoin's Rally

The US manufacturing sector saw a surge in input prices last month, sparking concerns about the impact on Bitcoin's price. According to the Institute for Supply Management (ISM), its manufacturing prices index rose by 6.8 points to 77.9 in September, while new orders and employment remained in expansion.

This combination of resilient activity and widening cost pressures may complicate the case for lower interest rates, which could have a negative impact on Bitcoin's price if investors expect higher interest rates ahead of Friday's jobs report.

However, it's worth noting that no systematic response to monetary and macroeconomic news has been found in historical intraday samples. The practical test is therefore whether rate expectations move and Bitcoin responds, rather than assuming a factory-cost increase guarantees a selloff.