ISM signals surging US factory costs, risk of Bitcoin falling below $85,000

Cryptoslate··US·Read original
3▲2 ▼1Impact / 5
Summary · why it matters

A report from the Institute for Supply Management, or ISM, dated October 1 said the US manufacturing prices index rose to 77.9, up 6.8 points from 71.1 in August, with 58.6% of respondents reporting higher input prices, compared with 46.2% in August. The manufacturing PMI stood at 54.5, new orders at 55.3 and employment at 52.7. This broader spread of rising input costs increases the risk to Bitcoin's funding backdrop if investors price in higher interest rates ahead of the October 2 employment report. On the latest policy backdrop, the Federal Open Market Committee, or FOMC, raised its target interest rate range by 0.25% to 3.75% to 4% on September 16, and on September 29 New York Fed President John Williams said another increase could be appropriate late this year if the economy follows his projections. Meanwhile, a study by New York Fed staff in February 2023 found no systematic response by Bitcoin to financial and macroeconomic news, so Bitcoin's direction depends on how investors interpret the employment data and rate expectations.

Impact on assets 3

Others▲ · 2 stocks
％Effective Federal Funds Rate
EFFR
▲ PositiveMonetaryrelevance

Rising input costs and FOMC's 25bp hike to 3.75%-4% with Williams hinting at more tightening push the effective fed funds rate higher.

Others▼ · 1 stocks
Bitcoin
BTC-USD
▼ NegativeMonetaryrelevance

Surging US manufacturing input prices raise the risk of higher interest rates, pressuring Bitcoin's funding backdrop and risking a drop below $85,000.

© 2026 MarketIVNews