Bitcoin slips below $85,000 as 5% Treasury yield returns to haunt risk assets
Bitcoin dropped below $85,000 on Sept. 23 as stronger-than-expected US business activity lifted Treasury yields and triggered liquidations of leveraged crypto positions. CoinGlass recorded $135.8 million in liquidations within an hour, mostly long positions; 24-hour losses reached $510 million. S&P Global’s September composite PMI rose to 58.4, its highest in over five years, while businesses reported sharply rising input costs, adding to inflation concerns. The 10-year Treasury yield moved above 5%, and the two-year yield reached a roughly 27-month high. Higher yields and the prospect of restrictive Fed policy weakened demand for risk assets. Bitcoin also lost support from short covering that had helped its recent rally, leaving a recovery dependent on new spot buyers.
