Bitcoin Climbs Near $86k on Weaker US Jobs Data

Bitcoin rose above $85,000 on Monday, briefly touching $87,000, as investors weighed weaker-than-expected U.S. jobs data against elevated Treasury yields and persistent inflation concerns. The cryptocurrency was last up around 1.1% at $85,929.4 by 02:27 ET (06:27 GMT), after reaching a high of $86,995.4 earlier in the session. Bitcoin has struggled to sustain gains above $87,000, despite briefly breaking that level following Friday's U.S. employment report.

Last week's data showed U.S. employers added only 29,000 jobs in September, significantly below expectations, while previous months' figures were revised lower. This reinforced expectations that the Federal Reserve is unlikely to raise interest rates at its October meeting. Markets now see less than a 20% chance of an October rate hike, sharply lower than last week. The softer labor market has supported risk-sensitive assets by reducing expectations for further monetary tightening.

Bitcoin, often trading as a liquidity-sensitive asset, jumped above $87,000 on Friday after the jobs report before paring gains as bond yields recovered. The 10-year Treasury yield briefly fell below 5.17% after the jobs data but later rebounded to about 5.28%, keeping pressure on cryptocurrencies and other higher-risk assets. Investors remain reluctant to assume that one weak employment report will prompt an immediate shift toward easier policy, particularly with inflation risks elevated.

The dollar also remained relatively firm, limiting Bitcoin's upside. A stronger U.S. currency typically makes dollar-denominated assets such as cryptocurrencies less attractive to overseas buyers. Still, flows into U.S. spot Bitcoin exchange-traded funds have provided a supportive backdrop, with the funds recording net inflows of $102.7 million on Oct. 1 and $189.8 million on Oct. 2.

Bitcoin's latest gains have been tempered by broader macroeconomic risks. Oil prices remain above $100 a barrel amid the Middle East conflict, raising concerns that higher energy costs could keep inflation elevated and constrain the Federal Reserve's ability to ease policy. For now, traders are likely to focus on whether Bitcoin can establish a foothold above $87,000. A sustained break could revive expectations of a move toward $90,000.