Bitcoin Falls Below $84,000 as Treasury Yields Surge on Strong U.S. Data; $510 Million Liquidated
Summary
- Bitcoin (BTC) fell below $84,000 as strong U.S. economic data and a surge in Treasury yields weighed on the market.
- Over the past 24 hours, total liquidations across the crypto market reached $510 million, with long positions alone accounting for $363.83 million in losses.
- Bitcoin will need fresh inflows into the spot market, rather than short-covering, to regain the $85,000 level.
Forecast Trend Report by Period
Bitcoin fell below $84,000 as stronger-than-expected U.S. economic data and a sharp rise in Treasury yields weighed on the cryptocurrency.
U.S. economic data for September released on Sept. 23 exceeded market expectations, snapping Bitcoin’s recent advance. As Treasury yields surged, leveraged long positions across the digital-asset market were liquidated en masse, deepening the decline.
According to CoinGlass, $135.8 million of positions in the crypto market were forcibly liquidated in the hour after the data release. Long liquidations accounted for $125.9 million of that total. Liquidations in Bitcoin and Ether totaled $47.4 million and $23.9 million, respectively.
Over the past 24 hours, total liquidations across the crypto market increased to $510 million. The number of liquidated traders reached 122,256, with losses from long positions alone totaling $363.83 million.
Crypto news outlet CryptoSlate said the stronger-than-expected U.S. economic data shocked the market. S&P Global’s flash U.S. composite purchasing managers’ index for September came in at 58.4, the highest in more than five years. The services and manufacturing PMI readings, at 58.7 and 57, also topped market expectations. Companies’ input costs rose at the fastest pace in four years, heightening inflation concerns.
In response, the U.S. 10-year Treasury yield rose above 5%, approaching its highest level since 2007, while the two-year yield climbed to its highest in about 27 months. With economic growth and price pressures both strengthening, expectations grew that the Federal Reserve could keep interest rates elevated for longer.
Bitcoin had earlier risen to around $87,000 after breaking above $86,000, buoyed by the forced liquidation of short positions. This time, however, heavy long liquidations sapped the rally’s momentum. To regain the $85,000 level, Bitcoin will need fresh inflows into the spot market rather than temporary buying driven by short covering.
