Bitcoin has climbed above $87,000 following the release of US labor market data. Investors are reacting to a weaker-than-expected jobs report, which has significantly shifted market expectations regarding the Federal Reserve's interest rate policy for the upcoming October meeting.
According to the Bureau of Labor Statistics, US employers added 29,000 jobs in September, missing the forecast of 89,000. Additionally, employment figures for July and August were revised downward by 60,000. The unemployment rate reached 4.2%, with 7.1 million people currently unemployed.
Market participants now estimate an 82% probability that the Federal Reserve will maintain the benchmark interest rate at 3.75% to 4.00% during the meeting on October 28. This is a sharp increase from the 36% probability recorded just one week ago.
Conversely, the likelihood of a quarter-point rate hike has dropped to approximately 18%, down from 64% a week prior. Fabian Dori, chief investment officer at Sygnum Bank, noted that while the data supports a pause in rate hikes, liquidity remains the primary driver for risk assets.
