Bitcoin drops below $85,000: Three hurdles ahead of Friday's options expiry

Bitcoin is trading around $83,800 as of Thursday, September 24, marking a 2.5% decline from the previous day. The price drop follows a surge in the 10-year U.S. Treasury yield, which hit a peak of over 5.1% on Wednesday—the highest level since July 2007—after strong S&P Global PMI data signaled economic acceleration. Fed Governor Michael Barr's comments on potential rate hikes and weak demand for 5-year Treasury notes further pressured the market, with CME FedWatch data showing a 73% probability of an October rate hike. Additionally, the market is monitoring the upcoming Trump-Xi summit in Washington for potential geopolitical and economic impacts. The volatility resulted in $237 million in leveraged long positions being liquidated within an hour.