Bitcoin Trades Above $86,000 as Investors Assess US Employment Data and Inflation Risks

Bitcoin's price exceeded $86,000 on Monday and briefly approached $87,000 during the session. Investors are weighing weaker-than-expected US employment data, still-elevated Treasury yields, and risks of persistent inflation.

According to the latest data, Bitcoin's price rose by approximately 1.3% to $86,203.4. During the day, the cryptocurrency's high reached $86,995.4. Despite this, Bitcoin was again unable to hold above the $87,000 level.

The cryptocurrency's growth is somewhat constrained by a stronger dollar. A strengthening US currency typically makes dollar-denominated assets, including cryptocurrencies, relatively less attractive to foreign investors.

Inflows into US spot Bitcoin ETFs remain a supportive factor for Bitcoin. According to SoSoValue data, the funds recorded net inflows of $102.7 million on October 1 and $189.8 million on October 2.

Meanwhile, macroeconomic risks in the market remain elevated. Amid the ongoing conflict in the Middle East, oil prices remain above $100 per barrel, which heightens the risk of rising inflation due to more expensive energy resources. This, in turn, could limit the Federal Reserve's ability to ease monetary policy.

Market attention is now focused on whether Bitcoin can stabilize above $87,000. A sustained breakout above this level could strengthen expectations of further gains toward $90,000.

OKX and ICE to Launch Platform for Trading Tokenized US Stocks

Meanwhile, OKXICE, a joint venture between crypto exchange OKX and Intercontinental Exchange, the parent company of the NYSE, has notified the US Securities and Exchange Commission (SEC) that it plans to launch a platform for trading tokenized securities under a new innovation exemption.

According to OKX, the platform will allow users to trade tokenized versions of US stocks on a blockchain-based system. The service will operate on the company's X Layer network and will initially cover shares of more than 60 US-listed companies. Companies wishing to exit the platform will have a 30-day window to do so.

The initiative follows a decision made by the SEC last month, which allows certain trading platforms to trade tokenized versions of US-listed stocks for five years without registering as an exchange.

Bitcoin's Gains Boosted by Weak Employment Data

New US labor market data also became a significant factor for Bitcoin. In September, US employers created only 29,000 jobs, a figure significantly below forecasts. Additionally, employment figures for the previous two months were revised downward.

The weak data strengthened expectations that the Federal Reserve will not raise interest rates at its October meeting. According to market estimates, the probability of a rate hike in October is less than 20%.

The weakening labor market somewhat improved sentiment toward risk assets, as investors saw less need for further monetary policy tightening. Following the release of the jobs report, Bitcoin's price rose above $87,000 on Friday, though it later gave back part of those gains.

At the same time, the yield on US 10-year Treasury bonds fell below 5.17% after the weak employment data, before later recovering to approximately 5.28%. High bond yields continue to put pressure on Bitcoin and other high-risk assets.

Investors remain cautious at this stage and do not expect a rapid shift in Federal Reserve policy based on a single weak employment report, especially while inflation risks remain elevated.