Bitcoin Breaks Through Resistance as Fed Rate Hike Odds Plummet

The recovery of Bitcoin has picked up pace due to softer employment figures and increased investment demand. According to 21shares' senior crypto research strategist Matt Mena, reduced expectations for further monetary tightening are favorable for cryptocurrencies heading into the final quarter.

Mena views $87,000 as a barrier to further gains, which Bitcoin broke through on October 2. He estimates around $7 billion in quarterly fund additions and links this to changing economic expectations.

The strategist believes that softer hiring gives the Federal Reserve room to hold rates into 2027, describing a weekly decline of more than 35% in hike odds. The employment backdrop weakened as U.S. employers added 29,000 jobs in September and unemployment reached 4.2%, according to the September employment figures released October 2 by the Bureau of Labor Statistics.

Mena's quarterly estimates also included $2.6 billion for ether and $500 million for solana. He predicts that ether will break $3K toward $4K and solana will reclaim $125 on its way to $140.