Bitcoin traded below $84,000 early Thursday, down about 3% over 24 hours and more than $3,500 below Wednesday’s early high above $87,000, as U.S. borrowing costs hit levels not seen in nearly two decades.

The 10-year Treasury yield closed Wednesday at 5.11%, up 15 basis points on the day and its highest close since July 13, 2007, according to the Treasury Department’s daily yield curve. Five- and seven-year yields also posted their highest closes since that week.

Dogecoin was down nearly 8% at about $0.093 and XRP about 8.5% at $1.47 as of 9:24 a.m. UTC Thursday, while ether and solana each lost more than 3%.

A Hot Survey and a 5% Auction

At 9:45 a.m. ET Wednesday, S&P Global reported that its flash U.S. Composite PMI jumped to 58.4 in September from 56.0 in August, the strongest reading since July 2021. Input costs rose at the fastest overall pace since October 2022, the survey found.

“US business continues to boom, with output growing at the fastest rate for over five years in September,” said Chris Williamson, chief business economist at S&P Global Market Intelligence. He pointed to fuel and transport costs “spiking higher thanks to the rise in oil prices seen during the month.”

That afternoon, Treasury sold $70 billion of five-year notes at a high yield of 5.033%. No five-year auction has cleared higher since June 2006, TreasuryDirect records show.

Rally Cools

The pullback cut into a run that took bitcoin above $85,000 on Monday for the first time since January. It is still up about 9% over seven days, CoinGecko data show, and sits about 34% below its October 2025 record of $126,080.

The Federal Reserve’s quarter-point hike on Sept. 16, its first in over three years, set the benchmark rate at 3.75% to 4%.

Williamson said the buildup of unfinished orders in the survey shows companies gaining pricing power, which he called “a worry for the inflation outlook.”

Related Listen: Strategy Sold More Bitcoin. Is This a Betrayal of the Bitcoin Ethos?