Live updates: Bitcoin turns lower as rates rise, consumer confidence plunges

The Conference Board reported a notable deterioration in U.S. consumer sentiment in September, with its headline Consumer Confidence Index sliding to 81.9 from 88.6 in August. That 6.7-point decline marked the lowest reading since April 2014 and reflected weakening views on both current business conditions and the six-month outlook. The Expectations Index also fell for a third consecutive month, dropping 5.9 points to 63.6.

Economic commentary from The Conference Board highlighted that consumers now expect business conditions and the labor market to worsen over the coming six months, though household income expectations remain positive albeit less optimistic than in prior months. Separately, government labor data showed another sign of softening: JOLTS job openings fell to 7.079 million in August from 7.335 million in July, coming in below economist forecasts.

Financial markets reacted to a mix of policy remarks and macro developments. New York Federal Reserve President John Williams said there was "no need for urgency" after September's policy action and described his base case as one additional rate increase this year; his comments pushed short-term rate markets lower and reduced the odds of an October hike. The two-year Treasury yield fell to about 4.88% from intraday highs near 4.96%, while the 10-year yield traded around 5.27% after briefly dipping.

Commodity and crypto markets also moved. The U.S. offered up to 40 million barrels from the Strategic Petroleum Reserve, contributing to a drop in WTI crude toward $90.50 per barrel and a roughly $1 decline intraday. Bitcoin initially rose on an overnight drop in yields but reversed course in U.S. trading as longer-dated yields firmed; BTC traded near $83,400, down modestly over the prior 24 hours. Bitcoin futures open interest has fallen to about 628,000 BTC, a year-to-date low from 763,000 BTC at the start of August.

Market participants are watching upcoming data and positioning into the fourth quarter: Friday's U.S. nonfarm payrolls report for September is due, with forecasts calling for about 129,000 jobs and a 4.1% unemployment rate, while traders enter Q4 with reduced leverage in bitcoin futures and subdued retail interest.