Bitcoin Breaks $86,000 as Gold Steadies Amid NFP Miss

Bitcoin rallied above $86,000 on Friday, extending its gains despite a weaker-than-expected US non-farm payrolls (NFP) report. The report showed a surprise softening of the labor market, with 29,000 jobs created in September, missing the market expectation of 90,000. This has reduced the odds of a Federal Reserve rate hike in October, averaging 18% according to CME Group's FedWatch tool.

The reduced risk of a rate hike has given risk assets more room to move higher, with Bitcoin bulls reclaiming trend control. The cryptocurrency trades above key moving averages, with no nearby overhead technical barriers on the daily chart. The focus remains on the supply between $88,000 and $90,000 levels and how long buyers can defend the underlying supports.

Gold, on the other hand, holds onto an upward correction, trading near $4,200. The metal has gained momentum for the second straight day, building on gradually improving market sentiment. However, it remains bearish in the near term, staying below key moving averages and reinforcing an overhead supply zone.