Bitcoin Holds Near $86,000 as Fed Rate Hike Expectations Ease

Bitcoin maintained its position near the $86,000 mark on Tuesday, benefiting from improved market sentiment due to weaker-than-expected US jobs data. The cryptocurrency was trading at $86,027, up 0.23% in the past 24 hours, while Ethereum saw a slight decline of 0.35%. Among the major altcoins, BNB, XRP, Solana, and Dogecoin corrected by up to 1.30%, whereas Tron, Hyperliquid, and Cardano gained up to 2.65%.

Vikram Subburaj, CEO of Giottus, noted that weak September jobs data has significantly reduced expectations of a Fed rate hike in October, boosting sentiment for risk assets like crypto. However, he cautioned investors against chasing short-term rallies, advising a staggered approach until the macroeconomic outlook becomes clearer.

The global crypto market capitalization dipped 0.18% to $2.92 trillion, according to Coinmarketcap data. Minal Thukral, Executive VP-Growth & Crypto Business Head at CoinDCX, observed that Bitcoin faces considerable bearish pressure around $85,400, with the fear and greed index slightly rising to 67, indicating persistent greedy market sentiment.

Riya Sehgal, Research Analyst at Delta Exchange, highlighted that Bitcoin continues to hold a constructive structure but struggles to break out decisively, remaining capped around the $86,500-$87,600 region. She noted that profit-taking is elevated on-chain, but there are no clear signs of broader structural exhaustion.

Prateek Gupta, Head of Business at Mudrex, stated that Bitcoin is consolidating around $85,600-$86,000, with the dollar reaching an 18-month high and the 10-year Treasury yield near 5.25%. Markets now expect a Fed pause on October 28 after the weak US jobs data. Key events like the FOMC minutes on Wednesday and the October 14 CPI report will be crucial tests for the market.