Bitcoin Reclaims $86K as US Spot ETF Demand Returns Ahead of Jobs Report

Bitcoin regained its footing above $86,000 on October 2 as demand for US spot Bitcoin ETFs rebounded. The recovery was largely driven by short covering, which accelerated an existing advance ahead of the US jobs report.

The price surge carried Bitcoin beyond the September 30 rebound above $85,000 that faded below $84,000 after US inflation data. Coinbase's BTC-USD market showed a 24-hour range from $83,353.87 to $86,885.28, with the last trade at $86,377.70.

US spot Bitcoin ETFs recorded net inflows of $102.7 million on October 1, according to Farside Investors' ETF flow data. This followed a net outflow in the previous session, and weakens the case that redemptions marked the start of a sustained withdrawal.

The recovery was met with caution, as inflation remains an obstacle to the recovery, even if the Fed takes more time to assess its next move. The September 30 PCE report showed core inflation at 0.2% month over month and 3.0% year over year, while headline inflation was 0.3% monthly and 3.4% annually.

The September US jobs report is scheduled for 12:30 UTC on October 2, making it the next test of whether Bitcoin can retain $86,000. Holding above this level alongside further ETF inflows would strengthen the case for continuing demand.