Bitcoin Soars on Weak US Jobs Report, Traders Bet on Fed Pause

Bitcoin surged to nearly $87,250 after the release of the September US jobs report, which showed employers added only 29,000 jobs versus expectations for 90,000. This weaker-than-expected labor data led traders to interpret softer conditions as supportive for risk assets and less restrictive policy from the Federal Reserve.

The combination of weaker hiring, higher unemployment at 4.2%, and softer wages strengthened the market's case for less restrictive monetary policy. Prediction markets placed the probability of a Fed pause at 85% after the release, a major shift from more hawkish positioning following stronger labor data last month.

However, one jobs report does not settle the policy path, as inflation remains central to the Fed's decisions. Bitcoin's intraday surge leaves traders watching whether buyers can defend the move above $86,000 and challenge $87,250 again.