Bitcoin Rises 1.3% to $86K as Weak Jobs Data Cuts Fed Hike Odds for October

Bitcoin climbed 1.3% to around $86,203 on Monday after briefly reaching $86,995, as traders assessed a sharply weaker U.S. labor market against elevated Treasury yields and persistent inflation risks.

The September employment report showed just 29,000 jobs were added, while July and August payrolls were revised down by a combined 60,000. The unemployment rate increased to 4.2%.

The report reduced expectations for another near-term Federal Reserve rate increase, supporting risk-sensitive assets such as Bitcoin. However, BTC has struggled to establish a durable position above $87,000.

High Treasury Yields Limit Bitcoin Upside

The weaker employment figures initially pushed Treasury yields lower, but the decline did not last. The 10-year yield subsequently climbed to around 5.25%, keeping financial conditions restrictive and limiting the upside for cryptocurrencies.

The market is therefore balancing two competing signals: weaker employment could reduce pressure for additional monetary tightening, while elevated inflation and energy prices could keep the Fed cautious.

The September report also showed average hourly earnings rising just 0.1% month over month and 3.0% over the past year, adding to evidence that labor-market momentum is cooling.

Bitcoin also has support from institutional demand:

• U.S. spot Bitcoin ETFs recorded $102.7 million in net inflows on Oct. 1.
• A sustained break above $87,000 could put $90,000 back in focus.

Oil prices above $100 a barrel remain another risk because higher energy costs can reinforce inflation and reduce the scope for easier monetary policy.

OKXICE Advances Tokenized Stock Trading

Crypto markets are also absorbing a major development in tokenized securities. OKXICE, a joint venture between OKX and Intercontinental Exchange, has filed with the SEC to launch a platform offering around-the-clock trading in tokenized U.S. stocks.

The proposed venue would cover more than 60 U.S.-listed companies and use OKX’s X Layer blockchain. Issuers would receive 30 days to object to their shares being offered.

The initiative follows the SEC’s innovation exemption, which permits qualifying venues to facilitate on-chain trading of certain tokenized stocks under temporary, conditional relief.

Ethereum rose 0.8% to $2,720.88, while XRP gained 1.3% to $1.52. Solana was little changed and BNB slipped 0.2%. Cardano jumped 10.7% to $0.2710, while Dogecoin advanced 3.9%.

Conclusion

Bitcoin’s move above $86,000 reflects renewed optimism that weakening employment could reduce the need for additional Fed tightening. Yet Treasury yields near 5.25%, elevated oil prices and persistent inflation risks remain significant obstacles. For BTC, holding above $86,000 keeps the recovery intact, while a sustained move beyond $87,000 would strengthen the case for a test of $90,000.