Crypto Market Gains as US Rate Hike Odds Shrink
The crypto market saw notable shifts this week, with Bitcoin (BTC) rising 3.82% over seven days to $86,694.05, just 2.90% below its nearest resistance at $89,205.8. Ethereum (ETH) tested $2,745.68 for the second consecutive week, while Solana (SOL) held above its 100 EMA, with resistance at $127.07. These gains came amid a weaker US labor market, as the economy added only 29,000 jobs in September 2026, leading the market to cut the probability of an October rate hike to 21.59% from around 70% a week earlier.
The US macroeconomic landscape remained a key focus, with the M2 money supply reaching a record $23.34 trillion as of August 2026. The 10-year Treasury yield held steady at 5.26%, influenced by energy inflation, fiscal risk, and AI sector investments. Upcoming economic releases, including the ISM Services PMI and the inflation rate, could further shape market expectations for a potential rate hike.
Institutional capital flows showed a slowdown in spot Bitcoin ETF inflows, with net inflows of $241.09 million for the week ending 2 October, down from $2.39 billion the previous week. However, daily transfer volume on x402, a payment standard for AI agents, surged to $223,180 on 2 October, the highest since April, with Algorand accounting for around 72% of the volume. Blast, an Ethereum layer 2 network, announced the shutdown of its network, asking users to withdraw their assets before 26 October.
Technical analysis indicated that Bitcoin's price held above $82,226.2, with resistance at $89,205.8. Ethereum tested $2,745.68, while Solana approached resistance at $127.07. The Fear and Greed Index remained in the 'Greed' category at 69, slightly down from 70 a week ago.