Bitcoin Tops $86,000 as Fed Rate Hike Bets Fade

Bitcoin climbed 1% to just above $86,000 on Monday following a weaker-than-expected U.S. jobs report. The data caused traders to scale back expectations of a Federal Reserve rate hike in October.

Among the major cryptocurrencies, Dogecoin (DOGE) led gains with a rise of over 3%, while HYPE surged nearly 3% to approximately $93. Ether and XRP saw gains up to 1%, whereas SOL, BNB, and ZEC each dropped less than 1%, according to CoinDesk data.

The U.S. added only 29,000 jobs in September, far below the anticipated 84,000. Unemployment rose to 4.2%, and wage growth slowed to 3% year-over-year, marking the weakest pace since May 2021. Despite the data suggesting a Fed pause, long-term borrowing costs remained steady, with the 10-year Treasury yield holding at 5.25%.

Weekend liquidations were relatively light at $62.7 million, with short bets accounting for 68% of the total. According to QCP Capital, Bitcoin needs to hold above $87,200 to confirm its next upward move. The minutes from the Fed's last meeting are set to be released on Wednesday.