Bitcoin dropped below $84 000 on Wednesday, reversing an earlier rally that had pushed the price above $87 000 on Binance. The decline occurred within an hour of the release of new US economic data.
The S&P Global flash Purchasing Managers’ Index (PMI) for September rose to 58.4, up from 56.0 in August. This represents the fastest growth in business activity since July 2021. The manufacturing gauge reached 57.0, its highest level since May 2022.
The report also highlighted rising input costs, which reached their fastest growth rate since October 2022, driven by higher fuel and transport expenses. Additionally, hiring reached its quickest pace since June 2022.
Following the data release, the 10-year US Treasury yield climbed to 5.058%, up from 4.96% on Tuesday. This level marks a 19-year high for the 10-year bond yield.
Higher Treasury yields typically reduce the appeal of non-interest-bearing assets like Bitcoin. The Federal Reserve previously raised its benchmark rate to a range of 3.75% to 4% on September 16.
