On Friday, Bitcoin once again broke through the $87,000 mark. Reports indicate that this sudden price increase was driven by a surprisingly weak U.S. employment report. The latest macroeconomic data significantly weakened market expectations for the Federal Reserve to raise interest rates again this month.

CoinGecko data shows that this flagship cryptocurrency has risen from approximately $86,000 to a high of nearly $87,250 during trading.

The U.S. economy only added 29,000 new jobs in September. In contrast, analysts had previously expected that the number of new jobs could reach up to 90,000. At the same time, the unemployment rate rose from 4.1% to 4.2%, which was also unexpected by the market.

Reports suggest that a cooling labor market is beneficial for Bitcoin, as it makes it more difficult for the Federal Reserve to find reasons to further tighten monetary policy.

Major accident

The U.S. Bureau of Labor Statistics initially reported that the U.S. economy created 162,000 new jobs in August. However, this figure has now been revised down to 133,000.

According to the latest revisions, it has been proven that the U.S. economy actually lost 10,000 jobs in September. The revised data for July and August combined to erase the previously reported 60,000 job creations.

This means that between July and September, the U.S. economy added only about 51,000 new jobs per month on average.

Healthcare remains one of the few sources of employment growth. The construction industry added 11,000 new jobs. However, the financial sector saw a reduction of 7,000 jobs.

The average hourly wage has only increased by 3% year-on-year. A slowdown in wage growth indicates that inflationary pressures have eased.

Interest rate hike expectations have dropped significantly.

As previously reported by U.Today, the Federal Reserve raised its benchmark interest rate by 25 basis points in September, bringing the target range to 3.75%-4.00%. This was the first interest rate hike in three years.

Given that the Federal Reserve is highly focused on achieving a 2% inflation target, further interest rate hikes are still a fairly likely option before that happens. This is also one of the main sources of selling pressure on Bitcoin.

However, following the release of the latest report, the futures market now expects that the probability of the Federal Reserve raising interest rates in October has dropped below 20%.

Nevertheless, the market still expects the Federal Reserve to raise interest rates again in December.

The swap market, which is linked to the Federal Reserve's interest rates, no longer fully anticipates that there will be another full interest rate hike this year.

Whether Bitcoin can convincingly break above $87,000 remains to be seen.