Bitcoin Falls Below $85,000 as 5% Treasury Yield Returns

Bitcoin fell below $85,000 on Sept. 23 after stronger-than-expected US business activity sent Treasury yields higher and flushed leveraged longs.

The reversal broke the momentum behind a rebound that had accelerated as Bitcoin pushed through a large concentration of short positions earlier this week.

Selling intensified after S&P Global released its September flash purchasing managers’ indexes. Within an hour, $135.8 million of crypto positions were liquidated, according to CoinGlass, with longs accounting for $125.9 million. Bitcoin accounted for $47.4 million of the wipeout, and Ether another $23.9 million.

Over the past 24 hours, losses total $510 million across 122,256 traders, with long traders losing $363.83 million.

The reaction reflected how quickly the rate backdrop turned against a market positioned for further upside. The latest economic data showed US growth accelerating as businesses reported renewed cost pressures, strengthening the case for interest rates to remain elevated.

Hot US growth sends Treasury yields above 5%

S&P Global’s composite PMI climbed to 58.4 in September, its highest level in more than five years, while the services index rose to 58.7 and manufacturing reached 57. All three readings came in above expectations.