Bitcoin hovers above $86k as softer jobs data offsets pressure from high yields

Bitcoin hovered above $86,000 on Monday after briefly climbing near $87,000, as investors weighed weaker-than-expected U.S. jobs data against still-elevated Treasury yields and persistent inflation concerns.

Bitcoin was last up around 1.1% at $86,246.4 by 10:05 ET (14:05 GMT), after touching $86,995.4 earlier in the session.

The cryptocurrency has struggled to sustain moves above $87,000 after also briefly breaking that level following Friday’s U.S. employment report.

Bitcoin fails to hold gains above $87,000

Data last week showed that U.S. employers added 29,000 jobs in September, well below expectations, while payroll figures for the previous two months were revised lower.

The data reinforced expectations that the Federal Reserve is unlikely to raise interest rates at its October meeting.

Markets now see less than a 20% chance of an October rate hike, sharply lower than last week, according to CME FedWatch.

The softer labour market has supported risk-sensitive assets by reducing expectations for further monetary tightening.

Bitcoin, which often trades as a liquidity-sensitive asset, jumped above $87,000 on Friday after the jobs report before paring gains as bond yields recovered.

The 10-year U.S. Treasury yield briefly fell below 5.17% after the jobs data but later rebounded to about 5.28%, keeping pressure on cryptocurrencies and other higher-risk assets.

Investors have remained reluctant to assume that one weak employment report will prompt an immediate shift toward easier policy, particularly with inflation risks elevated.

ves above $87,000 after also briefly breaking that level following Friday’s U.S. employment report.

The dollar also remained relatively firm, limiting Bitcoin’s upside. A stronger U.S. currency typically makes dollar-denominated assets such as cryptocurrencies less attractive to overseas buyers.

Still, flows into U.S. spot Bitcoin exchange-traded funds have provided a supportive backdrop. The funds recorded net inflows of $102.7 million on Oct. 1 and $189.8 million on Oct. 2, according to SoSoValue data.

Bitcoin’s latest gains have been tempered by broader macroeconomic risks. Oil prices remain above $100 a barrel amid the Middle East conflict, raising concerns that higher energy costs could keep inflation elevated and constrain the Federal Reserve’s ability to ease policy. 

For now, traders are likely to focus on whether Bitcoin can establish a foothold above $87,000. A sustained break could revive expectations of a move toward $90,000.

OKX-ICE venture to launch tokenized U.S. stock trading

OKXICE, the joint venture between crypto exchange OKX and NYSE parent Intercontinental Exchange, has notified the Securities and Exchange Commission (SEC) that it plans to launch a tokenized securities trading venue under the agency’s new innovation exemption.

In a notice dated Sunday, OKX said the platform will offer permissioned, on-chain trading of tokenized U.S. stocks on its X Layer network. The venue plans to cover more than 60 U.S.-listed companies, and issuers will have 30 days to opt out.

The filing follows the SEC’s decision last month to grant a five-year exemption allowing certain venues to trade tokenized versions of U.S.-listed stocks without registering as exchanges.