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Bitcoin dips below $84,000 as real Treasury yields jump
US 10-year real yields rose from 2.63% to 2.76% after a stronger-than-expected S&P Global PMI, lifting the opportunity cost of holding a non-yielding asset.
Bitcoin fell to an intraday low of $83,500 on Sept. 23, the same day the US 10-year Treasury yield closed at 5.11% after jumping 15 basis points in a single session. CryptoSlate links the move to expectations shifting around interest rates following a hotter-than-expected S&P Global Purchasing Managers' Index.
The report says the 10-year real yield, which removes expected inflation, climbed from 2.63% to 2.76% on the Treasury curve, with implied 10-year inflation compensation edging from about 2.33% to 2.35%. It also cites the S&P Global PMI data, with the composite reading rising to 58.4 from 56.0, including services at 58.7 and manufacturing at 57.0.
Higher inflation-adjusted bond yields increase the opportunity cost of holding Bitcoin, which does not pay a yield, according to CryptoSlate. The article points to the Federal Reserve having less room to ease, coming one week after its Sept. 16 hike to a 3.75% to 4.00% target range, and notes that Bitcoin's drop coincided with about $280 million in long liquidations as it broke below $84,000, per CoinGlass.
On-chain levels highlighted by Glassnode place the nearest demand support between $84,000 and $85,000, with the main downside reference at about $77,000 if the market loses $84,000 on daily closes. The same framework sets upside resistance at about $96,700, while spot Bitcoin ETFs reportedly pulled in about $1.3 billion over the five days since the squeeze began, ending two weeks of outflows.
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