Bitcoin holds near $84,000 as traders cut $1.7 billion leverage

Bitcoin remained near $84,000 as traders cut $1.7 billion in leverage. The 10-year Treasury yield reached 5.22%, its highest level since 2007. The 30-year Treasury yield reached 5.5185%, a fresh 22-year high. Bitcoin stayed within a roughly $83,000 to $85,000 range after reaching about $87,000 earlier in the week. Bitwise analyst Camran Khosravi said Bitcoin gained about 22% since Aug. 19 as the 10-year real yield rose 50 basis points. Jefferies said the 10-year yield was on track for a seventh consecutive monthly increase. A $44 billion seven-year Treasury note auction cleared at 5.085%, up from 4.512% in August. The auction yield was the highest since April 1993. The auction's bid-to-cover ratio fell to 2.42 from 2.50 previously. Mohamed El-Erian said heavy government and corporate borrowing had contributed to the bond selloff. He also cited strong economic activity and reduced willingness or capacity among some traditional Treasury buyers. The Federal Reserve raised its target range by 25 basis points last week. S&P Global's preliminary September composite purchasing managers' index rose to 58.4 from 56.0. CryptoQuant data showed combined Bitcoin open interest on Binance, Gate.io, HTX and Bybit falling to about $10.3 billion on Sept. 25 from $12 billion on Sept. 22. The decline represented a 14.3% contraction in leveraged exposure. Bitcoin fell about 2.3% from roughly $86,000 to $84,000 over the same period. Open-interest data cannot show whether longs or shorts accounted for most of the decline. CoinGlass identified liquidation concentrations around $85,300 to $85,700 above Bitcoin. It also showed additional liquidity near $83,000 and a larger cluster around $80,000. The PCE inflation gauge is due on Sept. 30. The September employment report is due on Oct. 2.