Bitcoin Surges Past $86,885 Ahead of US Jobs Data Release

Bitcoin briefly surged past $86,885 on Friday, October 2, ahead of the US jobs data release. The nonfarm payrolls report was expected to show a 90,000 job gain in September, with unemployment holding steady at 4.1%. Meanwhile, U.S. Treasury yields reached multi-decade highs of 5.34%, limiting Bitcoin's price action.

Crypto traders shifted into risk-on mode as Bitcoin traded above $86,000, up 3.4% over the past 24 hours. The market positioning and ETFs also indicated a shift towards risk assets. Citigroup raised its Bitcoin price target to $113,000 from $82,000, citing increased optimism.

The rally sparked debate among analysts, with some attributing it to short covering rather than genuine buying interest. However, derivatives data showed rising open interest and high funding for longs, suggesting that the move was driven by actual buying pressure.