Bitcoin reached a price of $87,229 on the Bitstamp exchange on Friday, following the release of US nonfarm payrolls data that fell short of market expectations. The economy added 29,000 jobs in September, significantly below the anticipated 84,000. Additionally, August figures were revised downward from 162,000 to 133,000.
The weaker labor market data caused US Treasury yields to decline for the second consecutive day. The 30-year yield dropped to 5.573%, while the 10-year yield fell to 5.2%. Consequently, market expectations for a 0.25% interest-rate hike by the Federal Reserve in October decreased to an 18% probability, compared to 64% one week prior.
Despite the initial spike, Bitcoin encountered significant order-book resistance near the $87,300 level, preventing it from establishing new macro highs. The asset subsequently retreated below $86,000. Analysts from QCP Capital suggest that the ongoing decline in bond yields remains a potential catalyst for further upside.
Equity markets responded positively to the jobs report, with the S&P 500 rising 1% and the Nasdaq Composite Index gaining 1.8% at the Wall Street open. Traders reduced their expectations for aggressive interest-rate hikes by the Federal Reserve in response to the economic data.
