US factory costs spike, threatening Bitcoin’s rally above $85,000

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US manufacturers reported more widespread input-price increases in September, raising a potential financing risk for Bitcoin if investors respond by expecting higher interest rates ahead of Friday’s jobs report.The Institute for Supply Management’s Oct. 1 release put its manufacturing prices index at 77.9, up 6.8 points from August’s 71.1. The manufacturing PMI registered 54.5, new orders 55.3 and employment 52.7.For Bitcoin, that combination matters because resilient activity and widening cost pressures could complicate the case for lower interest rates.The prices gauge measures how widely monthly increases are reported, and its 77.9 reading is not a 77.9% inflation rate. Higher input prices were reported by 58.6% of respondents, compared with 46.2% in August. The diffusion-index method counts higher responses plus half of unchanged responses.The potential pressure runs through ratesThe policy backdrop already includes a completed increase by the Federal Open Market Committee, which raised its target range by a quarter percentage point to 3.75% to 4% on Sept. 16.In Sept. 29 remarks, New York Fed President John Williams said another upward adjustment might be appropriate late this ...

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