Bitcoin moved above $87,000 on Friday after weaker-than-expected US employment data pushed Treasury yields lower and improved sentiment across risk assets.
However, strong resistance around the $87,300 area prevented Bitcoin from reaching a new multi-month high.
Bitcoin Price Jumps After Weak US Jobs Report
Bitcoin briefly climbed to around $87,229, coming close to its highest level in roughly eight months.
The move followed the release of weaker US nonfarm payrolls data for September.
The US economy added just 29,000 jobs during the month, well below expectations of around 84,000.
Previous employment figures were also revised lower. August payroll growth was cut from 162,000 to 133,000, while earlier data also showed signs of a cooling labor market.
The weaker figures increased expectations that the Federal Reserve could remain cautious about further interest rate hikes.
US Stocks Rise as Fed Rate Hike Expectations Fall
US equity markets also reacted positively to the softer employment report.
The S&P 500 gained around 1% at the Wall Street open, while the Nasdaq Composite climbed approximately 1.8%.
Traders reduced expectations for another Federal Reserve rate increase as signs of weakness in the labor market continued to build.
Market commentary from The Kobeissi Letter described the latest payroll report as one of the weakest employment readings of 2026.
Fed Rate Hike Odds Drop Sharply
Expectations for an October Federal Reserve rate hike fell significantly following the jobs report.
According to market pricing, the probability of a 0.25 percentage-point increase dropped to around 18%.
That compares with roughly 64% just one week earlier.
Lower expectations for further monetary tightening helped push US Treasury yields down for a second consecutive session.
Treasury Yields Fall From Multi-Year Highs
The US 30-year Treasury yield fell to around 5.57%, while the 10-year yield moved near 5.2%.
Both yields had recently reached their highest levels in roughly 24 years.
The decline in yields provided relief to risk assets, including Bitcoin, which had faced pressure from rapidly rising borrowing costs.
Lower bond yields can make non-yielding and higher-risk assets more attractive to investors, especially when expectations for tighter monetary policy begin to weaken.
Bitcoin Faces Strong Resistance Near $87,300
Despite the positive macroeconomic backdrop, Bitcoin was unable to break decisively above its recent highs.
BTC later moved back below $86,000 as sellers continued to defend resistance around $87,300.
Exchange order books showed significant sell-side liquidity near that level.
These sell orders have created a barrier for Bitcoin and prevented the cryptocurrency from extending its rally into fresh multi-month highs.
Falling Yields Could Support Bitcoin
Analysts remain focused on the relationship between Bitcoin and US Treasury yields.
Trading firm QCP Capital said Bitcoin could continue to benefit if bond yields move lower following the weaker labor-market data.
The firm argued that a sustained Treasury market recovery could become an important bullish catalyst for Bitcoin.
BTC has already shown resilience despite the recent sharp rise in real interest rates.
If Treasury yields continue to decline, liquidity conditions could become more supportive for cryptocurrencies and other risk assets.
Bitcoin Support Holds Near $82,800
Technical analysts are also watching key support levels.
Trader Aksel Kibar noted that Bitcoin had successfully retested support around $82,800 on the daily chart.
Holding above that level could keep the broader bullish structure intact.
For now, traders are watching whether Bitcoin can overcome resistance near $87,300 and move toward fresh highs.
A continued decline in US bond yields could strengthen the bullish case, while renewed selling pressure in Treasury markets could once again limit Bitcoin’s upside.
