Bitcoin Surges Past $86,000 as Fed Rate Hike Bets Fade
Bitcoin climbed 1% to just above $86,000 early Monday, following a weaker-than-expected U.S. jobs report. The data caused traders to scale back bets on an October Federal Reserve rate hike, boosting cryptocurrency prices.
Among the major cryptocurrencies, Dogecoin (DOGE) led gains with a 3% rise, while HYPE surged nearly 3% to about $93. Ether and XRP each saw gains up to 1%. Meanwhile, Solana (SOL), Binance Coin (BNB), and Zcash (ZEC) dipped less than 1%, according to CoinDesk data.
The U.S. jobs report revealed that employers added just 29,000 jobs in September, far below the expected 84,000. Unemployment rose to 4.2%, and wage growth slowed to 3% year-over-year, the weakest pace since May 2021. These figures suggest the Fed may pause rate hikes in October, though long-term borrowing costs have remained stable.
The 10-year Treasury yield held at 5.25%, a level QCP Capital attributed to heavy bond supply and higher investor demands for long-dated debt returns. Weekend liquidations were light at $62.7 million, with short bets making up 68% of the total. QCP Capital noted that Bitcoin still needs to clear $87,200 to confirm the next upward move. Minutes from the Fed's last meeting are set to be released on Wednesday.