Live updates: Bitcoin under pressure as rates continue to rise
Reported by CoinDesk · AI-assisted summary by ChikoCorp AI News Desk
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Summary
Bitcoin increased by 1% to just above $86,000 on Monday, following a weak U.S. jobs report that led traders to reduce expectations for a Federal Reserve rate hike in October. DOGE rose over 3%, HYPE nearly 3%, with Ether and XRP up to 1%, while SOL, BNB, and ZEC fell slightly. The jobs data showed only 29,000 new jobs in September versus 84,000 expected, with unemployment rising to 4.2% and wage growth slowing to 3%.
Why it matters
The soft jobs report shifts market sentiment away from an imminent Fed rate hike, influencing Bitcoin and broader crypto asset prices. However, long-term borrowing costs remain elevated, which could impact market dynamics. The Fed meeting minutes release on Wednesday is a forthcoming event that could further affect market expectations.
Key context
The U.S. labor report is a key economic indicator influencing Federal Reserve policy decisions, which subsequently affect risk assets including cryptocurrencies. Long-term yields such as the 10-year Treasury are influenced by bond supply and risk premiums, and these yields have remained high despite the recent weakening in jobs data. Trading liquidations were light over the weekend, suggesting moderate market stability.
Key numbers and entities
Bitcoin price rose above $86,000. Job additions: 29,000 in September (expected 84,000). Unemployment rate: 4.2%. Wage growth: 3% year-over-year. 10-year Treasury yield: 5.25%. Weekend liquidations: $62.7 million, with shorts at 68%. Cryptos mentioned include Bitcoin, DOGE, HYPE, Ether, XRP, SOL, BNB, and ZEC. QCP Capital provided analysis.
What remains unclear
The source does not specify how long market participants expect the Fed pause to last or detailed implications for other asset classes. The detailed content of the Fed meeting minutes due Wednesday is also unknown. It is unclear what specific market levels beyond $87,200 would trigger further Bitcoin price moves.