Bitcoin Holds Near $86,000 as Fed Rate Hike Bets Fade
Bitcoin held steady near the $86,000 mark on Monday, as weaker-than-expected US jobs data significantly lowered the chances of a Federal Reserve rate hike in October. The cryptocurrency was trading at approximately $85,950. Over the past 24 hours, Bitcoin and Ethereum saw gains of 0.84% and 0.54%, respectively. Among major altcoins, XRP, Tron, Hyperliquid, Dogecoin, and Cardano surged up to 10.71%, while BNB and Solana dipped up to 1%.
The broader crypto market showed positive momentum, with the global market capitalisation rising 0.64% to $2.93 trillion. CoinDCX’s Executive VP-Growth and Crypto Business Head, Minal Thukral, noted that Bitcoin broke out of consolidation, closing the week around $86,800, and is currently trading near $86,300. The crypto fear and greed index stood at 65, indicating a greedy market sentiment.
Over the past week, Bitcoin and Ethereum posted gains of 3.95% and 2.71%, respectively, with altcoins like BNB, XRP, Solana, Tron, Hyperliquid, Dogecoin, and Cardano rising up to 11.99%. Prateek Gupta, Head of Business at Mudrex, highlighted that Bitcoin is holding above $86,000 after peaking at $87,250 on Friday. Weak US jobs data slashed the probability of an October Fed rate hike from 64% to below 20%, pushing Treasury yields lower.
However, demand for Bitcoin ETFs cooled, with spot Bitcoin funds attracting just $223 million last week, down from $2.39 billion the previous week. Industry experts noted that Bitcoin’s recovery toward $87,000 is supported by improving institutional demand and stronger market positioning. Despite elevated US Treasury yields, Bitcoin remains supported by renewed institutional interest and reduced expectations of near-term monetary tightening.