Bitcoin Treads Water Near $87,000 as US Jobs Data Weighs on Market

Bitcoin hovered above $86,000 on Monday, but its gains were tempered by broader macroeconomic risks. The cryptocurrency had briefly climbed near $87,000, but struggled to sustain its move above that level after the weaker-than-expected U.S. jobs data.

The data showed that U.S. employers added 29,000 jobs in September, well below expectations. This reinforced expectations that the Federal Reserve is unlikely to raise interest rates at its October meeting, with markets now seeing less than a 20% chance of an October rate hike.

The softer labor market has supported risk-sensitive assets by reducing expectations for further monetary tightening. However, investors have remained reluctant to assume that one weak employment report will prompt an immediate shift toward easier policy, particularly with inflation risks elevated.

Flows into U.S. spot Bitcoin exchange-traded funds have provided a supportive backdrop, with the funds recording net inflows of $102.7 million on Oct. 1 and $189.8 million on Oct. 2.