Bitcoin Holds Above $85k as Softer Jobs Data Tempers Inflation Fears

Bitcoin traded above $85,000 on Monday, buoyed by weaker-than-expected U.S. jobs data, which offset pressure from still-elevated Treasury yields and persistent inflation concerns. The cryptocurrency has struggled to sustain moves above $87,000, having briefly broken that level following Friday's U.S. employment report.

Data last week showed that U.S. employers added 29,000 jobs in September, well below expectations, while payroll figures for the previous two months were revised lower. The softer labor market has supported risk-sensitive assets by reducing expectations for further monetary tightening.

Despite the positive trend, investors remain cautious, with the 10-year Treasury yield rebounding to about 5.28% after briefly falling below 5.17%. A stronger U.S. currency has also limited Bitcoin's upside, as a firmer dollar makes dollar-denominated assets such as cryptocurrencies less attractive to overseas buyers.

However, 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.