Bitcoin Surges to $87K as Weak US Jobs Report Dents Fed Hike Odds

Bitcoin surged towards $87,000 in reaction to a weaker-than-expected US jobs report, which strengthened expectations that the Federal Reserve may pause rather than raise interest rates later this month.

The US economy added just 29,000 jobs in September, falling short of the 84,000-90,000 jobs economists had predicted, while unemployment ticked up to 4.2%. The Bureau of Labor Statistics also revised July and August payroll growth lower by a combined 60,000 jobs, further indicating a slowdown in hiring.

BTC traded as high as $87,086 after the report before retracting some of the gains. The current price is around $85,300. The softening labor market data has shifted the macro backdrop in favor of risk assets.

Fed rate hike odds have significantly decreased following the jobs report, with futures markets cutting the probability of an October hike from 66% to 22%. Chicago Fed President Austan Goolsbee noted that both a hike and a pause remain 'on the table', indicating the decision is still up in the air.

Despite the improving macro environment, Bitcoin still faces technical challenges. The cryptocurrency has repeatedly struggled around the $87,000-$87,500 zone, making this area the most important short-term resistance. Institutional demand is providing support, with U.S. spot Bitcoin ETFs attracting $6.34 billion in Q3, including $2.65 billion in September.