Bitcoin Falls Below $85,000 as 10-Year Yield Hits 19-Year High

Bitcoin (CRYPTO: BTC) slipped below $85,000 Wednesday, down 2%, as the US 10-year Treasury yield surged past 5% to levels unseen in 19 years.

What Triggered the Yield Spike

Widely-followed crypto analyst Bull Theory posted on X that the 10-year yield jumped right after September’s flash PMI data blew past forecasts, with the composite PMI hitting a five-year high. 

The two-year yield also touched a 27-month high. Together, those moves signal the bond market now expects the Fed to lean more hawkish rather than less.

What the PMI Data Actually Shows

According to S&P Global’s flash September PMI report, the composite output index hit 58.4, its highest reading in 62 months, up from 56.0 in August. Services and manufacturing both accelerated:

S&P Global chief business economist Chris Williamson said the survey data lines up with roughly 5% annualized growth, with Q3 tracking closer to 4% overall. 

That strength cuts both ways for risk assets. Faster growth can support appetite for Bitcoin, but it also weakens the case for urgent rate cuts.

The inflation signal adds to that tension. Input costs across manufacturing and services hit their highest level since October 2022, driven mainly by fuel and transportation costs, alongside stronger wage pressure.