Bitcoin Hovers Above $86k as Softer Labor Market Supports Risk-Assets

Bitcoin's price briefly touched $87,000 on Friday after the U.S. employment report, but the cryptocurrency struggled to sustain its gains. On Monday, it hovered above $86,000, up around 1.1% at $86,246.4 by 10:05 ET (14:05 GMT). The softer labor market has supported risk-sensitive assets by reducing expectations for further monetary tightening.

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. 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, according to CME Group. The softer labor market has also supported Bitcoin, which often trades as a liquidity-sensitive asset, and flows into U.S. spot Bitcoin exchange-traded funds have provided a supportive backdrop.