Resurgent interest rate hike expectations hit US stocks and cryptocurrencies, with the Nasdaq ending its four-day winning streak and Bitcoin falling below $85,000.

Overnight, unexpectedly strong PMI data sharply boosted market bets that the Federal Reserve will maintain a tighter stance for longer, coupled with factors such as uncertainty over US-Iran tensions, leading to broad declines in US stocks and crypto assets. The three major US stock indexes closed lower: the Dow Jones Industrial Average fell 0.68%, the S&P 500 dropped 0.75%, and the Nasdaq slid 1.1%. According to market data from BIT (bit.com), among notable stocks, SK Hynix fell 3%, Meta rose 1%, and Amazon declined 2%. Among crypto-related stocks, Securitize, which benefits from the SEC’s stock token exemption policy, surged 10.46% against the trend, while other crypto treasury companies saw declines of varying degrees: MSTR fell 3.07%, BMNR dropped 4.52%, and BNC slid 3.63%. The PMI data, released Wednesday, far exceeded expectations, marking the fastest expansion pace since 2021. As a result, the 10-year US Treasury yield rose 14 basis points in a single day, breaking through the 5.00% threshold; the 5-year yield hit its highest level since 2007 during trading, while the 30-year yield climbed to its peak since 2004. The interest rate swap market has fully priced in expectations of three rate hikes over the next year, with some hedge positions even reflecting the possibility of a fourth hike. According to HTX market data, Bitcoin accelerated its sharp decline after yesterday’s US stock market opened, briefly falling below $84,000 before consolidating sideways, and is currently trading at $84,417.10.