Bitcoin slid roughly 4% from its recent peak near $87,000, dropping to an intraday low around $83,200 on September 23-24, as a sharp move higher in US Treasury yields and the dollar reminded crypto traders that macroeconomics still runs the show.

The 10-year Treasury yield climbed to between 5.11% and 5.13%, a level not seen since 2007.

The catalyst was a batch of US economic data that came in hotter than Wall Street expected. The S&P Global flash composite PMI printed at 58.4, its strongest reading since July 2021.

Oil prices crossing the $100 mark didn’t help the inflation narrative either. Higher energy costs feed into broader price pressures, which gives the Federal Reserve less room to ease policy and more reason to keep rates…