Bitcoin dropped below $84,000 Wednesday, wiping out much of a nearly $10,000 rally that had carried the cryptocurrency from around $74,900 to a high of approximately $87,300 on Monday — a gain of roughly 13% over four days.
The reversal came about an hour after U.S. economic data was released, underscoring the sensitivity of crypto markets to macro signals. Bitcoin fell from its Binance-traded morning high above $87,000 to trade under $84,000 as risk sentiment tightened.
U.S. Treasury yields surged in tandem with the selloff. The 10-year yield climbed to 5.058%, up from a close of 4.96% on Tuesday, while the two-year sat at 4.79%. The benchmark rates reflect the trajectory set by the Federal Reserve's Sept. 16 decision to raise its policy rate to a 3.75% to 4% range, a move the central bank framed as necessary to return inflation to its 2% target. Markets are now pricing in more than a 53% chance of another rate hike in October.
The S&P Global flash purchasing managers' index added to the macro backdrop. The September composite PMI rose to 58.4 from 56.0 in August, the fastest pace of growth since July 2021. The manufacturing gauge jumped to 57.0 from 53.9, the strongest reading since May 2022. Input costs accelerated to the steepest rate in four years, driven by higher oil prices lifting fuel and transport expenses. Chris Williamson, chief business economist at S&P Global Market Intelligence, said the cost pressures would add further upward pressure on selling prices and inflation in coming months.
The options market pointed to near-term turbulence. Implied volatility hovered around 35%, and roughly $14 billion in BTC options are scheduled to expire on Deribit Friday, with prominent call clusters at $85,000 and $100,000. Short liquidations totaled about $844 million over 24 hours during the day's move, according to Greeks.live researcher Adam, though hourly liquidations later fell below $11 million as the sell-off matured.
Traders are now watching key technical levels. The 100-week moving average sits near $89,000, while the $83,000 to $86,000 zone represents a long-term holder consolidation area. Upcoming data releases — the Oct. 2 jobs report and Oct. 14 CPI print — could further shape positioning ahead of Friday's expiry.
