Bitcoin Edges Higher Near $86,000 Amid Softer Jobs Data

Bitcoin rallied near $86,000 on Monday, briefly touching $87,000, as investors reacted to softer-than-expected U.S. jobs data. The cryptocurrency climbed around 1.1% to $85,929.4 by 02:27 ET (06:27 GMT), though it struggled to maintain gains above $87,000.

The latest jobs report showed U.S. employers added just 29,000 positions in September, far below expectations. This weakened outlook reduced the likelihood of a Federal Reserve interest rate hike in October to less than 20%. While this supported risk-sensitive assets like Bitcoin, elevated Treasury yields and persistent inflation concerns capped further gains.

Bitcoin surged past $87,000 on Friday following the jobs report but retreated as bond yields rebounded. The 10-year Treasury yield dipped below 5.17% before recovering to 5.28%, exerting pressure on cryptocurrencies. A stronger U.S. dollar also limited Bitcoin’s upside by making dollar-denominated assets less appealing to overseas investors.

Despite these challenges, U.S. spot Bitcoin exchange-traded funds saw significant inflows, with $102.7 million on Oct. 1 and $189.8 million on Oct. 2. Meanwhile, broader macroeconomic risks, including oil prices above $100 a barrel due to Middle East tensions, kept inflation worries alive. Traders are now watching whether Bitcoin can sustain a break above $87,000, which could pave the way for a push toward $90,000.