Bitcoin Falls Below $84,000 as Hot US Data Sends Yields Higher

Bitcoin (BTC) slipped below $84,000 on Wednesday after a surprise increase in U.S. business activity pushed Treasury yields higher. The move reversed a brief rally that had taken the cryptocurrency above $87,000 earlier in the session.

US PMI data shows strongest growth since 2021

The S&P Global flash Purchasing Managers’ Index (PMI) for September rose to 58.4 from 56.0 in August, marking the fastest expansion since July 2021. The manufacturing component jumped to 57.0 from 53.9, its strongest reading since May 2022. The report also highlighted rising input costs, driven by higher oil prices, and a hiring pace not seen since June 2022.

Higher Treasury yields pressure Bitcoin

Following the PMI release, the 10‑year U.S. Treasury yield climbed to 5.058%, up from 4.96% the previous day. Higher yields increase the cost of borrowing and make non‑interest‑bearing assets such as Bitcoin less attractive to investors. The 2‑year yield also rose, reinforcing expectations of further Federal Reserve rate hikes.

Fed policy context

The Federal Reserve raised its benchmark rate to a range of 3.75%–4% on September 16, aiming to bring inflation back to its 2% target. The recent yield increase adds to market speculation that another rate hike could be forthcoming.

Outlook

Final PMI readings for manufacturing are due on October 1, with services data scheduled for October 5. These figures will likely influence both Treasury yields and Bitcoin’s price trajectory in the coming days.