Home Bitcoin Analyst Sees Bitcoin Path to $97K as Weak Jobs Data Shift Fed...

Analyst Sees Bitcoin Path to $97K as Weak Jobs Data Shift Fed Odds

0


Key Takeaways

  • 21shares identifies $87,000 as a barrier to further gains.
  • The strategist estimates about $7 billion in quarterly fund additions.
  • His forecasts extend to ether at $4,000 and solana at $140.

Softer Jobs Data Put Bitcoin’s $87K Barrier in Focus

Bitcoin broke through $85,000-$86,000 overnight and was testing $87,000 on Oct. 2 when Matt Mena, senior crypto research strategist at 21shares, a crypto investment product issuer, supplied comments to Bitcoin.com News. He linked the advance to changing economic expectations and described the latter level as a barrier that had constrained prices for much of the year.

The strategist identified $87,000 as a resistance level, meaning a price area where selling pressure can impede an advance. Mena said:

“More uncertain macro data, such as this jobs report, could be the catalyst to clear this resistance and set the path to the next resistance levels: $90K and $97K.”

The employment backdrop weakened as U.S. employers added 29,000 jobs in September and unemployment reached 4.2%, according to the September employment figures released Oct. 2 by the Bureau of Labor Statistics. July and August gains were revised down by a combined 60,000.

Mena argued that softer hiring gives the Federal Reserve room to hold rates into 2027, describing a weekly decline of more than 35% in hike odds. Separately, derivatives exchange CME Group’s FedWatch rate probabilities reflect prices of contracts tied to future interest rates; they represent traders’ expectations.

Fund Buying Supports the Recovery as Rate Risks Remain

Alongside the economic shift, the analyst estimated approximately $7 billion in third-quarter net inflows into bitcoin exchange-traded funds (ETFs), stock-exchange products offering asset exposure. He described that as their strongest quarter since Q3 2025, ahead of the October 2025 record high. Net inflows measure additions after withdrawals.

Daily U.S. allocations were uneven around the quarter’s end, with $102.7 million in net inflows on Oct. 1, according to Farside Investors. That followed $148.7 million in withdrawals on Sept. 30. Mena’s quarterly estimates also included $2.6 billion for ether and $500 million for solana.

The scale of tightening also shapes the outlook, with crypto asset manager Grayscale describing September’s increase as a limited adjustment within the current economic cycle. Its Sept. 17 analysis anticipated a smaller effect on digital assets than the sustained tightening that began in 2022.

Upcoming releases provide further tests, as crypto exchange Bitfinex identifies continued direct buying as central to sustaining gains. Its October economic catalysts include the Consumer Price Index, which measures consumer inflation, and the Federal Reserve’s rate decision. Mena characterizes the cryptocurrency as particularly sensitive to the availability of investment capital.

Ether and Solana Targets Extend the Fourth-Quarter Forecast

The altcoin forecasts concern ether, the native cryptocurrency of Ethereum, and solana, the native token of the Solana network. Recent demand has varied, with ether and solana ETFs recording withdrawals of $55.37 million and $5.91 million, respectively, on Oct. 1. Ether funds experienced their third consecutive session of net outflows.

Mena stated:

“With momentum building, we see Ethereum breaking $3K toward $4K and Solana reclaiming $125 on its way to $140.”

“Uptober is off to a strong start. Q4 is historically Bitcoin’s best quarter, averaging 62.7% gains, and the stage is set for a strong year-end close,” he concluded.



Source link

NO COMMENTS

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Exit mobile version