Bitcoin Falls Below $85,000 as 10-Year Yield Hits 19-Year High

Bitcoin slipped below $85,000 Wednesday, down 2%, as the US 10-year Treasury yield surged past 5% to levels unseen in 19 years.What Triggered the Yield SpikeWidely-followed crypto analyst Bull Theory posted on X that the 10-year yield jumped right after September’s flash PMI data blew past forecasts, with the composite PMI hitting a five-year high.The two-year yield also touched a 27-month high. Together, those moves signal the bond market now expects the Fed to lean more hawkish rather than less.What the PMI Data Actually ShowsAccording to S&P Global’s flash September PMI report, the composite output index hit 58.4, its highest reading in 62 months, up from 56.0 in August. Services and manufacturing both accelerated:IndicatorSeptemberAugustComposite PMI Output58.456.0Services Business Activity58.756.5Manufacturing Output56.753.1Manufacturing PMI57.053.9S&P Global chief business economist Chris Williamson said the survey data lines up with roughly 5% annualized growth, with Q3 tracking closer to 4% overall.That strength cuts both ways for risk assets. Faster growth can support appetite for Bitcoin, but it also weakens the case for urgent rate cuts.The inflation signal adds to that tension. Input costs across manufacturing and services hit their highest level since October 2022, driven mainly by fuel and transportation costs, alongside stronger wage pressure.Hiring also picked up at its fastest pace since June 2022, with unfinished orders piling up at the sharpest rate since May 2022, pointing to businesses straining under demand and gaining more room to raise prices.One caveat worth flagging: selling price inflation accelerated from August but stayed below the pace seen from March through July, meaning input cost pressure has not fully passed through to consumers yet.Where Bitcoin Stands Technically?BTC trades near $84,250 Wednesday, pulling back from Monday’s high of $87,283.The move looks like a pullback inside an intact uptrend rather than a breakdown, with the Supertrend signal still bullish and trailing support at $78,243 from the August buy signal near $65,000.Key levels for BTC:$87,283 — Monday’s high, next major test$79,933 — 20-day EMA, key support Read Also: Photo via Shutterstock