Bitcoin falls below $84,000 as Treasury yields climb

Bitcoin fell below $84,000 on September 23 and 24, sliding from a recent high near $87,000 to an intraday low reported between $83,200 and $83,500, as rising U.S. Treasury yields and stronger economic data pressured the cryptocurrency. It later traded back above $84,000 in some reports, but remained below its recent peak. The U.S. 10-year Treasury yield reached 5.13% intraday and closed Wednesday at 5.11%, its highest level since 2007. Higher yields can make government debt more attractive relative to assets such as Bitcoin, which does not pay interest. The dollar also strengthened, adding to pressure on risk-sensitive markets. Economic figures contributed to expectations that interest rates could remain elevated. S&P Global’s September flash composite purchasing managers index rose to 58.4 from 56.0 in August, its strongest reading since July 2021. The data pointed to expanding business activity, while reports also cited higher energy prices as a source of concern about inflation. Together, those factors prompted traders to reassess the outlook for Federal Reserve policy. CME FedWatch data put the market-implied probability of an October 28 rate increase at 75.3%.