US factory costs spike, threatening Bitcoin’s rally above $85,000
Summary
The ISM manufacturing prices index rose 6.8 points to 77.9 in September, while the PMI, new orders and employment readings indicated expanding factory activity. The index reflects how broadly firms reported price increases, not the inflation rate. The data may complicate expectations for lower interest rates, following the Fed’s September rate increase and conditional comments from New York Fed President John Williams. Higher borrowing costs or returns on dollar assets could weigh on Bitcoin, but the effect depends on how markets interpret the Oct. 2 jobs report and whether rate expectations move. Historical research found no systematic Bitcoin response to monetary and macroeconomic news, so a selloff is not guaranteed.
