Bitcoin broke out of a recent consolidation phase and closed the weekly trade around $86,800, according to CoinDCX. Ethereum was trading around $2,700, while BNB, XRP and Solana also remained higher.
Avinash Shekhar, Co-Founder and CEO, Pi42, said the change in the US rate outlook could provide a potential liquidity catalyst for Bitcoin, although he cautioned that the cryptocurrency has yet to establish a clear breakout.
The weaker-than-expected US jobs data has reduced expectations of an October Federal Reserve rate hike, providing some support to risk assets. Bitcoin’s ability to hold around current levels after its September rally also suggests that underlying demand remains intact, Shekhar said.
Institutional demand has also remained supportive. Riya Sehgal, Research Analyst, Delta Exchange, said US spot Bitcoin ETFs attracted around $2.65 billion in September, while Bitcoin’s recovery towards $87,000 has been accompanied by stronger market positioning.
The key near-term level for Bitcoin remains around $87,000-$87,500. A sustained move above this zone could strengthen the recovery and bring $90,000 into focus, while the $85,000-$85,500 area remains an important support zone, Sehgal said.
Vikram Subburaj, CEO, Giottus, said Bitcoin was benefiting from renewed institutional demand and lower expectations of near-term monetary tightening. He added that investors would also be watching inflation, oil prices and Treasury yields, with US CPI data and the Federal Reserve meeting later this month likely to be important catalysts.
Meanwhile, Nischal Shetty, Founder, WazirX, said the wider crypto market’s total market capitalisation rose about 1.9% over the past 24 hours to around $2.95 trillion, indicating a broader recovery in digital-asset valuations. Bitcoin continued to lead the market, while Ethereum and other large-cap cryptocurrencies also participated in the recovery.
However, higher global bond yields remain a potential headwind for crypto assets. Shetty noted that rising yields can make government bonds relatively more attractive and increase the opportunity cost of holding volatile, non-yielding assets such as Bitcoin.
For investors, Shekhar said the focus should remain on the interaction between Treasury yields and Bitcoin’s price rather than chasing a sharp rally. A sustained move above the $87,500 zone, alongside easing yields, would provide stronger confirmation of the recovery.