TLDR Bitcoin surged to $87,200 on Friday, marking its strongest performance since January, before retreating to levels below $86,000. The September nonfarm payrolls report showed only 29,000
Bitcoin surged beyond the $87,000 threshold on Friday, October 2, 2026, driven by disappointing US employment figures that triggered a decline in Treasury bond yields.
Bitcoin (BTC) Price
The leading cryptocurrency touched $87,229 on the Bitstamp exchange, based on TradingView market data. The peak fell marginally short of establishing fresh eight-month records.
BTC subsequently retraced to levels beneath $86,000. As of publication time, the digital asset was changing hands around $86,700.
The September nonfarm payrolls figure registered at a meager 29,000 new positions. Market forecasters had anticipated 84,000 additions. Additionally, August employment data underwent downward revision from 162,000 to 133,000.
BREAKING: The US economy adds +29,000 jobs in September, well below expectations of +89,000.
The unemployment rate rose to 4.2%, above expectations of 4.1%.
August's job number was also revised down by -29,000 jobs.
This marks the third weakest jobs report of 2026.
— The Kobeissi Letter (@KobeissiLetter) October 2, 2026
The jobless rate ticked upward to 4.2% from the previous 4.1% reading. According to trading intelligence platform The Kobeissi Letter, this marked the third-weakest employment report throughout 2026.
Equity markets responded positively to the labor market weakness. The S&P 500 index advanced 1%, while technology-heavy Nasdaq Composite jumped 1.8%.
Market participants dramatically reduced expectations for Federal Reserve tightening. CME Group’s FedWatch Tool indicated merely an 18% probability of a 0.25% rate increase in October, plummeting from 64% probability registered one week prior.
US Treasury yields extended their decline for a consecutive second session. The 30-year maturity yield registered at 5.573%, while the benchmark 10-year yield settled at 5.2%.
Cryptocurrency trading institution QCP Capital suggested a Treasury market relief rally would provide Bitcoin its most favorable upward trajectory. The firm observed that Bitcoin has demonstrated resilience throughout a real-rate environment that negatively impacted gold valuations.
Blockchain analytics platform Glassnode reported that sellers had partially executed limit orders near the $85,000 level before withdrawing remaining positions. This action eliminated a significant resistance barrier that had previously constrained upward price movement.
Source: Glassnode
Glassnode identified the subsequent concentration of sell orders positioned around $87,000. QCP Capital established resistance at $87,400 and support at $82,500, highlighting that Bitcoin successfully defended the support threshold on three separate occasions this week.
Market analyst Ted, operating under the handle @TedPillows on X, indicated Bitcoin had escaped from its bullish pennant formation accompanied by increasing spot market demand. He emphasized the cryptocurrency is nearing its yearly opening price level, suggesting a daily settlement above $87,500 could catalyze rapid advancement toward $90,000. He cautioned that another failure at this resistance zone would likely force price action back toward retesting the breakout point at $84,500.
$BTC has broken out of its bullish pennant with rising spot demand.
Now, Bitcoin is approaching its yearly open level.
If BTC manages a daily close above $87,500, a rally towards $90,000 could happen quickly.
Another rejection from this zone means BTC will retest the breakout… pic.twitter.com/ibfNPD5cmy
— Ted (@TedPillows) October 2, 2026
Bitcoin registered a 12% appreciation throughout September while gold experienced an 8.5% decline during the identical timeframe. QCP Capital characterized the rally as resembling a concentrated capital flow movement rather than widespread rotation away from fixed-income securities.
Exchange-traded funds focused on spot Bitcoin accumulated approximately $2.6 billion in net inflows throughout September, which QCP Capital highlighted as a contributing factor driving the appreciation.
Fabian Dori, Chief Investment Officer at Sygnum Bank, cautioned that disappointing employment data doesn’t automatically translate to bullish conditions. He emphasized that liquidity conditions remain the primary catalyst for Bitcoin price action regardless of direction.
Paul Howard from Wincent reaffirmed his $100,000 year-end projection remains intact. He referenced Citi’s updated price forecast of $113,000 as supporting evidence.
Matt Mena, Senior Crypto Research Strategist at 21Shares, noted that the fourth quarter historically represents Bitcoin’s strongest performance period, delivering average returns of 62.7%.
The post BTC Rally Continues: Weak Nonfarm Payrolls Push Bitcoin (BTC) Toward $90K Target appeared first on Blockonomi.
