US Real Yields Surge, Bringing Bitcoin Price Below Key Support Zone
A hotter-than-expected business activity survey triggered investors to reprice interest rates in the US, leading to a surge in real yields. The 10-year Treasury yield rose by 15 basis points on September 23, with the 10-year real yield climbing from 2.63% to 2.76%. This increase in inflation-adjusted opportunity cost pushed Bitcoin below $84,000.
The composite Purchasing Managers' Index (PMI) from S&P Global jumped to 58.4, the strongest expansion since July 2021. The Federal Reserve now has less room to ease monetary policy following its recent hike to a 3.75% to 4.00% target range.
Bitcoin's price decline played out in the same session as the surge in real yields, with roughly $280 million in long liquidations as price broke below $84,000. Glassnode's on-chain analysis identifies the nearest support zone for Bitcoin at $84,000 to $85,000.