Bitcoin Holds Near US$86,000 as US$87,000 Resistance Stalls Rally

Bitcoin is trading near US$86,000 after briefly approaching US$87,000, with improving US interest rate expectations supporting the market. The largest digital asset was recently valued at approximately US$85,845, down about 0.8% for the session, after ranging between US$85,050 and US$86,949.

Softer US employment data has boosted cryptocurrency markets, reducing expectations of another Federal Reserve rate hike in October. This shift helped Bitcoin push above US$86,000, as traders responded to the possibility of less restrictive monetary policy. However, persistent inflation and elevated bond yields remain risks.

Corporate accumulation continues, with Strategy purchasing 334 Bitcoin between October 1 and October 4 for around US$29 million. The company's holdings now total approximately 848,000 Bitcoin, acquired for about US$64 billion at an average cost of US$75,441. Institutional flows have also improved, with US spot Bitcoin ETFs reversing a significant deficit seen earlier in the year.

The broader cryptocurrency market saw slight declines, with Ethereum trading around US$2,715, XRP near US$1.51, and Solana around US$121. The modest losses suggest market consolidation rather than a major sell-off. The key hurdle for Bitcoin remains the US$87,000-US$87,500 resistance zone, with a breakout potentially targeting US$90,000.