Bitcoin Surges Above $86K as Weak Jobs Data Shifts Fed Outlook

Bitcoin's price surged above $86,000 after breaking through a significant sell wall near $85,000. The move followed weak U.S. jobs data, with September payrolls rising just 29,000, a far cry from the expected 90,000 new positions. As a result, the unemployment rate increased to 4.2%, and expectations for another Federal Reserve rate increase in October were reduced.

The weaker report bolstered the crypto market, which had already been gaining momentum. Higher borrowing costs had put pressure on the market as Treasury yields climbed above 5%. However, short liquidations worth over $120 million added fuel to the Bitcoin rally. Futures open interest increased by about $2.3 billion during this advance.

Persistent U.S. spot ETF demand also supported the price increase. The funds attracted around $2.65 billion in September and recorded roughly $6.34 billion in net inflows during the third quarter. Glassnode identified a large group of sell orders around $87,000, while QCP Capital placed resistance near $87,400.

The next major macro event is the release of September U.S. consumer inflation data on October 14. This will give Federal Reserve officials another key reading before their October meeting. Bitcoin's price may remain sensitive to rate expectations, ETF flows, and derivatives positioning.