Bitcoin briefly hits $87K as weak US jobs data sends bond yields lower

Bitcoin spiked past $87,000 on Friday after US nonfarm payrolls for September cooled significantly versus forecasts, with TradingView data showing BTC/USD reach $87,229 on Bitstamp. The weaker labor-market print coincided with a drop in Treasury yields and a reduction in market-implied odds of a near-term Federal Reserve rate rise.

The September payrolls figure showed just 29,000 jobs added, well short of the 84,000 that had been expected, and August’s payrolls were revised down from 162,000 to 133,000. Market participants pared back expectations for Fed tightening; CME Group’s FedWatch Tool indicated an 18% probability of a 25-basis-point hike in October, versus 64% a week earlier.

As yields fell — with the 30-year at about 5.573% and the 10-year at roughly 5.2% at the time of reporting — risk assets rallied: the S&P 500 and Nasdaq rose about 1% and 1.8% respectively at the open. Analysts and trading firms linked the drop in bond yields to upside potential for Bitcoin, with QCP Capital calling a Treasury “relief” rally the clearest catalyst for further BTC gains.

Despite the intraday strength, Bitcoin did not sustain a move to new multi-month highs. Order-book data pointed to substantial ask-side liquidity around $87,300, which acted as resistance and pulled BTC back below $86,000 later in the session. Some traders noted technical support held near $82,800 on the daily chart, suggesting a retest had already occurred.