Bitcoin Briefly Tops $87,000 After Weak US Jobs Data, Then Slips Back to $85,000

Bitcoin jumped past $87,000 on Friday after the US economy added only 29,000 jobs in September, far below what economists expected.

BTC reached $87,229, just short of a new eight month high, but it could not break above the multi-month peak set in September. The price later fell back below $86,000 and then to around $85,000. August payrolls were also revised down from 162,000 to 133,000, and July was cut as well.

Falling Bond Yields and Fed Rate Hike Odds

The soft data pulled Treasury yields lower for a second straight day, with the 10-year at 5.2% and the 30 year at 5.573% after both hit 24-year highs on Wednesday. CME FedWatch now shows only an 18% chance of an October rate hike, down from 64% a week earlier. The S&P 500 gained 1% and the Nasdaq rose 1.8% at the open.

Bitcoin Resistance at $87,300 and the Yield Outlook

Walls of ask liquidity on exchange order books kept the upside in check, with the latest band at $87,300 acting as resistance. Analysts still see falling yields as the cleanest upside catalyst for Bitcoin.