Bitcoin Falls as 10-Year Treasury Yield Reaches 5.11%
Bitcoin retreated below $84,000 after a morning rally failed near $85,911, with the decline accelerating after a strong S&P Global flash composite PMI reading. The 10-year Treasury yield closed at 5.11%, a 19-year peak, and reached 5.13% intraday. Fed Governor Michael Barr's restrictive comments added to the selling pressure.
Bitcoin opened near $85,600–$85,700 and briefly touched $85,911 before a September PMI release at 09:45 ET reversed direction. It lost $85,000, touched about $82,873, and traded near $83,460 by Thursday morning, a roughly 2.6% drop. The 10-year Treasury yield closed at 5.11%, a 19-year high, after reaching 5.13% intraday.
The PMI composite came in at 58.4, up from 56.0 and strongest since July 2021; manufacturing was 57.0 and services 58.7. Fed Governor Barr said inflation-target risks had grown and further adjustments were likely, with CME FedWatch showing a 70%–73% chance of an October hike. Spot Bitcoin ETFs drew $347 million, a fifth straight positive day, led by IBIT and FBTC.
Rising Treasury yields and expectations of further rate hikes could make zero-yield assets like Bitcoin less appealing, potentially pressuring crypto investors, ETF holders, and firms with bitcoin exposure. Retail traders using leverage may face sharper losses, while savers and bond investors could benefit from higher yields. The episode may reinforce how macroeconomic data and central-bank signals shape digital-asset markets, possibly influencing adoption and risk management.