Bitcoin Nears Eight-Month High Before Reversing
Bitcoin surged toward $87,000 early Monday, coming within striking distance of an eight-month high before reversing course. The cryptocurrency climbed 1.5% to above $86,000, driven by softer U.S. jobs data that raised hopes of lower interest rates and boosted global stock markets. Dogecoin led the gains among major cryptocurrencies, rising over 3%, while XRP, BNB, and ZEC saw increases between 1% and 2%. Bitcoin's peak reached just under $86,950 before dropping back to around $86,000 in Asian trading hours, still up 1.3% over 24 hours.
The rally built momentum over the weekend, accelerating late Sunday as Bitcoin breached the $86,000 mark. However, it has since lost about $1,000 in value. This marks the second time in a week that Bitcoin has approached its late-September high near $87,400, only to retreat. A similar surge occurred last Wednesday after a softer U.S. inflation report, with Bitcoin briefly hitting $85,500 before giving back those gains.
The softer U.S. jobs data on Friday eased some pressure on the Federal Reserve to continue raising interest rates. The 10-year Treasury yield fell two basis points to 5.25%, though it remains near its highest level since 2002. Global stocks extended their gains, with the Nasdaq 100 closing at a record high, MSCI's Asia Pacific equities index rising 1%, and Japan's Nikkei 225 gaining 2.5%. Meanwhile, the dollar strengthened, with a Bloomberg gauge of the U.S. currency rising 0.4% as the euro weakened.
A daily close above $87,000 would signal that buyers are breaking through the late-September high. For now, Bitcoin remains in a volatile state, with traders watching closely to see if it can sustain its upward momentum.