Bitcoin moved above $86,000 on Monday, briefly approaching the $87,000 level as investors balanced weaker-than-expected US employment data against elevated Treasury yields and ongoing inflation concerns.
The world’s largest cryptocurrency was up around 1.3% at $86,203.4 by 04:58 ET, or 08:58 GMT, after reaching an intraday high of $86,995.4.
Bitcoin has struggled to maintain momentum above $87,000, a level it also briefly crossed on Friday following the release of weaker US labour market data.
Bitcoin Struggles to Hold Above $87,000
US employers added 29,000 jobs in September, significantly below market expectations, while payroll figures for the previous two months were revised lower.
The weaker employment data reduced expectations that the US Federal Reserve will raise interest rates at its October meeting.
Markets are now pricing in less than a 20% probability of an October rate increase, according to CME FedWatch, marking a sharp decline from expectations seen a week earlier.
Signs of a cooling labour market have supported risk-sensitive assets by reducing concerns over further monetary tightening.
Bitcoin, which is often sensitive to changes in global liquidity conditions, moved above $87,000 after Friday’s employment report before giving back part of its gains as US government bond yields recovered.
The 10-year US Treasury yield briefly dropped below 5.17% following the jobs data but later climbed back to around 5.28%.
Higher bond yields can reduce investor appetite for cryptocurrencies and other risk assets by making traditional fixed-income investments relatively more attractive.
Investors also remain cautious about assuming that a single weak employment report will lead to a rapid change in Federal Reserve policy, particularly as inflation pressures remain elevated.
The US dollar stayed relatively firm, further limiting Bitcoin’s upside. A stronger dollar can make dollar-denominated assets, including cryptocurrencies, more expensive for overseas investors.
Spot Bitcoin ETF Inflows Offer Support
Despite the broader macroeconomic pressure, continued inflows into US spot Bitcoin exchange-traded funds have provided some support to the cryptocurrency market.
Spot Bitcoin ETFs recorded net inflows of $102.7 million on October 1 and $189.8 million on October 2, according to SoSoValue data.
Institutional investment through regulated Bitcoin products has become an increasingly important factor in market liquidity and investor sentiment.
However, Bitcoin’s gains remain constrained by wider economic risks.
Oil prices have stayed above $100 a barrel amid continued conflict in the Middle East, raising concerns that higher energy costs could keep inflation elevated.
Persistent inflation could make it more difficult for the Federal Reserve to move toward easier monetary policy, even as signs of weakness emerge in the US labour market.
Traders are now watching whether Bitcoin can establish sustained support above $87,000.
A convincing move beyond that level could strengthen expectations of a push toward the psychologically important $90,000 mark.
OKX-ICE Venture Plans Tokenized US Stock Trading Platform
Separately, OKXICE, a joint venture between cryptocurrency exchange OKX and Intercontinental Exchange, the parent company of the New York Stock Exchange, has notified the US Securities and Exchange Commission of plans to launch a tokenized securities trading platform.
According to a notice dated Sunday, the platform is expected to provide permissioned on-chain trading of tokenized US stocks using OKX’s X Layer network.
The proposed venue plans to offer tokenized versions of shares from more than 60 US-listed companies.
Under the structure outlined in the filing, companies will have 30 days to opt out of having their shares included on the platform.
The move follows a decision by the SEC last month to introduce a five-year innovation exemption allowing certain trading venues to offer tokenized versions of US-listed securities without registering under the standard exchange framework.
The initiative reflects growing interest among crypto and traditional financial companies in bringing conventional securities onto blockchain-based infrastructure.
