Bitcoin Falls Back Below $85K As Treasury Yields Jump Above 5%

TL;DR Bitcoin fell below $85,000 after stronger U.S. business data pushed Treasury yields higher. S&P Global’s flash U.S. Composite PMI rose to 58.4 in September, the strongest reading since July 2021. The move shows how quickly Bitcoin’s recent rebound can be challenged when markets price in tighter monetary policy. Bitcoin’s rebound has run into a familiar obstacle: rising interest rates. BTC fell back below $85,000 as U.S. Treasury yields climbed, with the 10-year yield moving above 5% after stronger-than-expected economic data renewed concerns that monetary policy may have to stay tight. Stronger Growth Is Not Automatically Good News For Bitcoin S&P Global’s flash U.S. Composite PMI rose to 58.4 in September from 56.0 in August. That was the strongest reading in more than five years. Normally, strong business activity sounds like straightforward good news. Markets are looking at the other side of the equation. Faster growth, stronger employment and rising input prices can give the Federal Reserve less reason to cut interest rates — and potentially more reason to keep policy restrictive if inflation remains uncomfortable. That pushes bond yields higher. For Bitcoin and o...