Bitcoin fell below the $84,000 mark on September 24, reversing part of its sharp September rally as rising US Treasury yields and stronger-than-expected economic data reduced appetite for riskier assets. The cryptocurrency was trading around $83,900 after touching nearly $87,300 earlier this week.

The immediate pressure came from a sharp rise in US bond yields. The 10-year Treasury yield climbed to around 5.11%, its highest level since 2007, after fresh data pointed to stronger US business activity. 

The September flash composite PMI rose to 58.4, marking the strongest expansion in more than five years. Stronger economic growth can reduce expectations for lower interest rates, making high-risk assets such as Bitcoin less attractive.

Oil prices also added to concerns about inflation and interest rates. Brent crude rebounded above $100 a barrel, reversing a recent decline. Higher energy prices could keep inflation pressures elevated and make it harder for central banks to ease monetary policy.

Bitcoin’s decline also followed a period of rapid gains. The cryptocurrency had climbed more than 13% in four days and reached an eight-month high of about $87,300. The sharp rally encouraged some investors to lock in profits, adding selling pressure once momentum weakened.

The decline was amplified by leveraged positions in the derivatives market. More than $500 million worth of crypto positions were liquidated over 24 hours, with long positions accounting for most of the forced selling. 

Bitcoin’s fall also dragged major altcoins lower, with Dogecoin, XRP and other large tokens recording sharper declines.

Despite the correction, Bitcoin remains higher for September after strong institutional demand and large inflows into US spot Bitcoin ETFs earlier in the week. Investors are now watching the $83,500-$84,000 region as an important near-term support zone, while a sustained move back above $85,000-$86,000 would be important for the broader price trend.

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