Bitcoin traded above $86,000 on Monday,
briefly approaching $87,000, as investors assessed weaker-than-expected U.S. employment data amidst still-high Treasury yields and persistent inflation concerns.
Bitcoin was last up approximately 1.3% at $86,203.4 as of 11:58, having reached $86,995.4 earlier in the session.
The cryptocurrency struggled to hold above $87,000 after briefly breaking through that level following Friday's U.S. employment report.
Bitcoin failed to sustain levels above $87,000.
Data from 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 downward.
These figures reinforced expectations that the Federal Reserve is unlikely to raise interest rates at its October meeting.
According to the CME FedWatch tool, markets now price in a less than 20% probability of an October rate hike, down significantly from the previous week.
A weaker labor market supported risk-sensitive assets by dampening expectations for further monetary policy tightening.
Bitcoin, which often trades as a liquidity-sensitive asset, jumped above $87,000 on Friday following the jobs report but subsequently pared gains as bond yields rebounded. The yield on 10-year US Treasury bonds briefly dipped below 5.17% following the release of employment data but subsequently recovered to around 5.28%, putting pressure on cryptocurrencies and other high-risk assets.
Investors remain hesitant to assume that a single weak employment report will trigger an immediate shift toward a looser monetary policy, particularly given the elevated risks of inflation.
The dollar also remained relatively strong, capping Bitcoin's upside potential. A stronger US currency typically makes dollar-denominated assets, such as cryptocurrencies, less attractive to foreign buyers.
Nevertheless, inflows into US spot Bitcoin exchange-traded funds (ETFs) provided a supportive backdrop. According to SoSoValue, these funds recorded net inflows of $102.7 million on October 1 and $189.8 million on October 2.
Bitcoin's recent rally has been tempered by broader macroeconomic risks. Oil prices remain above $100 per barrel amid the conflict in the Middle East, raising concerns that higher energy costs could keep inflation elevated and limit the Federal Reserve's ability to ease policy. For now, traders will likely focus on whether Bitcoin can establish a foothold above $87,000. A sustained breakout could reignite expectations of a move toward $90,000.
OKX-ICE Joint Venture to Launch Trading of Tokenized U.S. Stocks
OKXICE, a joint venture between cryptocurrency exchange OKX and Intercontinental Exchange (the parent company of the New York Stock Exchange), has notified the Securities and Exchange Commission (SEC) of plans to launch a platform for trading tokenized securities under a new agency exemption for innovation.
In a notice filed on Sunday, OKX stated that the platform would offer authorized trading of tokenized U.S. stocks on its X Layer network. The platform plans to cover more than 60 U.S.-listed companies, with issuers given 30 days to opt out.
The announcement follows the SEC's decision last month to grant a five-year exemption allowing certain platforms to trade tokenized versions of U.S. stocks without registering as exchanges.
Companies whose shares the platform plans to offer include Nvidia, Apple, Microsoft, Amazon, Tesla, JPMorgan Chase, Walmart, and SpaceX.