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

Bitcoin (BTC) fell below $84,000 on Wednesday after a surprise jump in US business activity sent Treasury yields higher.

The drop came within about an hour of the data release. It reversed a morning rally that had carried Bitcoin above $87,000 on Binance.

What the US Business Survey Showed

The S&P Global flash Purchasing Managers' Index (PMI) is an early monthly survey of about 1,150 US companies. A reading above 50 means business activity is growing.

September's composite reading rose to 58.4 from 56.0 in August. That is the fastest growth since July 2021. The manufacturing gauge jumped to 57.0 from 53.9, its strongest since May 2022.

However, the report also flagged rising costs. Input prices climbed at the fastest rate since October 2022 as oil pushed fuel and transport bills higher. Meanwhile, hiring hit its quickest pace since June 2022.

Chris Williamson, chief business economist at S&P Global Market Intelligence, warned about what comes next.

"Firms' input costs have meanwhile jumped in September at the steepest rate for four years, with fuel and transport costs spiking higher thanks to the rise in oil prices seen during the month, which will add further to the upward pressure on selling prices and inflation in the coming months," said Chris Williamson.