Bitcoin whipsaws after jobs report, falling below $84,000 following surge past $87,000
Bitcoin experienced intense volatility following the release of the U.S. employment report on October 2, briefly rallying past $87,000 before plunging below $84,000. The sharp reversal wiped out hundreds of millions of dollars in leveraged positions before the cryptocurrency stabilized above $85,000 over the weekend.
Bitcoin experienced sharp price swings on October 2, rallying from $84,500 to a high above $87,000 before reversing rapidly and sinking below $84,000 within hours. According to analysis by Bull Theory, the rally liquidated $216 million in short positions before the market turned downward roughly an hour after U.S. labor data was published. CoinMarketCap observed that Bitcoin retreated as Treasury yields rebounded, with Glassnode noting 10-year yields lingering near 5.2%.[1][6][7][10][3]
The rapid downward turn caused heavy liquidations across crypto derivatives markets. Long liquidations reached between $170 million and $175 million in a single hour, according to reports from Crypto Briefing and Kalshi Crypto. Crypto Rover noted $250 million in longs cleared over four hours, while Bull Theory estimated $278 million in long liquidations over five hours. A BlockNews report cited nearly $600 million wiped out across all positions during the selloff, which also coincided with Ethereum falling toward $2,650.[4][5][7][8][10]
The macroeconomic backdrop shifted significantly around the release, which recorded 29,000 payroll additions and a 4.2% unemployment rate. A Glassnode study reported that futures open interest fell $1.5 billion following payrolls after rising $2.1 billion in the preceding 24 hours. The firm also estimated that market odds of an additional Federal Reserve rate hike in late October plummeted from 66% to 22%. Bitcoin subsequently stabilized, recovering to around $84,800 on October 3 and trading at $85,276 by October 4.[3][4][9]
Key facts
- Bitcoin climbed from $84,500 to above $87,000 before dropping below $84,000 following the release of the U.S. jobs report on October 2.
- Reports placed total liquidations from the price swings between $433 million and nearly $600 million, including over $170 million in longs liquidated within a single hour.
- The September U.S. employment report recorded 29,000 payroll gains and a 4.2% unemployment rate.
- Glassnode data showed futures open interest increased by $2.1 billion ahead of payrolls and dropped $1.5 billion after the report.
- The calculated probability of another quarter-point Federal Reserve rate hike at the October meeting dropped from 66% to 22% post-jobs report, per Glassnode.
- Bitcoin rebounded to approximately $84,800 on October 3 and reached $85,276 on October 4.
Sources · 10 sources
- BC
Bitcoin.com News@BitcoinNewsPost on X ·
JUST IN: 🔻 #Bitcoin falls from daily high of $87,000 to under $84,000. https://t.co/jP8kfeXuCl
Open source - CO
CoinGape@CoinGapeMediaPost on X ·
🚨 #Crypto Market Slips 1.8% #Bitcoin fell below $85K as $433M in #leveraged positions were liquidated, while $BTC and $ETH ETFs saw combined $208.58M in #outflows on September 30. 🔗 Know more in comments
Open source - CR
CryptoSlateArticle ·
Bitcoin’s $85,000 recovery awaits proof that ETF investors kept buying after payrolls Bitcoin's recovery above $85,000 faces a demand test after a sharp fall in bets on another Federal Reserve rate hike. A new post-payroll study places the strongest burst of forced buying before Friday's jobs report, while Bitcoin retreated after the release. Bitcoin was $85,276 around press time, up 0.83% over 24 hours. The Sunday price remained below the $86,000 area reached before payrolls. For holders tracking Bitcoin's recovery , the gap raises a practical question: who will sustain the recovery after the initial short squeeze? Thursday's ETF inflows provided a buying signal, but incomplete Friday figures leave the industry's response to payrolls unresolved heading into Monday's US session. The squeeze came before payrolls Glassnode's Oct. 3 post-payroll study estimated the probability of an additional quarter-point hike at the Oct. 28 meeting fell from 66% on Sept. 28 to 22% by 15:00 UTC on Oct. 2. The estimate comes from Glassnode's calculations using fed funds futures and the effective federal funds rate. The timing of the strongest forced buying is revealing. Glassnode measured $50 million of short liquidations in ten minutes at 04:20 UTC on Oct. 2, eight hours before the jobs release. By 15:40 UTC, Bitcoin was more than 1% below its immediate pre-release level. Short sellers can add buying pressure when rising prices force them to close their positions. Once those positions are closed, maintaining the higher price requires other buyers to absorb continuing offers. Friday's sequence supports caution about extrapolating the overnight advance into lasting investor commitment. Open interest, the value of outstanding futures positions, rose $2.1 billion in the 24 hours before payrolls, according to Glassnode. Positions also grew about 2.5% when measured in coins. Open interest then fell $1.5 billion after continuing to rise for roughly an hour following the release. The dollar change tracks outstanding exposure and is affected by valuation; investment capital lost is a different measure. The study's sequence links expanding positions to the advance and their subsequent retreat to falling prices, while leaving the cause of the reversal unresolved. Related Reading Bitcoin sees big overnight rally as ETF demand returns before the next US jobs test The fund market supplies a separate piece of evidence. US spot Bitcoin ETFs recorded net inflows of $102 million on Oct. 1, according to Farside Investors' flow table . That positive session followed Wednesday's redemptions, showing that fund buying had returned before payrolls. It gives the recovery more substance than a short-covering explanation alone. Thursday's flow, however, describes a session before the report, leaving Friday's response to be measured separately. Related Reading Bitcoin ETFs are $5 billion away from a new flow record after a brutal 11-month reset Repeated inflows would extend Thursday's evidence across more sessions and show whether investors keep committing money after the release. Renewed redemptions would instead put that positive day in the context of a recovery struggling for sustained fund support. Participation also matters beyond fund subscriptions. In its Sept. 30 market study , Glassnode put combined spot-exchange and US spot-ETF trading volume at about $6.4 billion a day, near the bottom of its range since the ETFs launched. That pre-payroll assessment provides a dated baseline for judging whether activity broadens. Trading volume measures transactions, including repeated trades. A rise would indicate greater activity, while fund flows provide a separate measure of subscriptions and redemptions. Read together with price, these observations can help distinguish broader participation from an advance dominated by the closing of futures positions. Monday tests the path from policy relief to buying The latest observed Fed decision was a rate increase. Its Sept. 16 announcement raised the target range by a quarter percentage point to 3.75%-4%. Falling October hike odds leave that increase in place; a cut would require a separate policy decision. The September employment report , released on Oct. 2, recorded 29,000 payroll gains and 4.2% unemployment. The Bureau of Labor Statistics described both as little changed. Slower hiring can give policymakers reason for patience, making the report relevant to the next decision even while September's increase remains the policy baseline. Longer-term rates present another hurdle. Glassnode's Friday intraday study showed short-term yields falling while long-term yields rose, with the ten-year near 5.2%. That divergence matters because a reduced prospect of further Fed hikes can coexist with elevated longer-term borrowing costs. Related Reading Bitcoin survives a 5.2% Treasury shock as traders slash $1.7 billion in leverage For Bitcoin, the benefit depends on how investors respond. A more favorable outlook for the next policy meeting may encourage additional exposure. Whether that becomes sustained buying must be observed in the market, alongside the financing conditions investors still face. The Institute for Supply Management's September services report is scheduled for Monday, Oct. 5 at 10:00 a.m. ET. Its previous August survey combined a headline PMI of 55.4 with employment at 47.8 and a prices index of 72.6: expanding activity, contracting employment and broad input-cost pressure. That combination makes the next report's details relevant alongside its headline. Softer employment accompanied by easing price pressure could reinforce the argument for policy patience. Persistent price pressure or stronger activity could complicate it. The services release therefore supplies a fresh check on the rate outlook that emerged from payrolls. The next US ETF sessions will show whether fund investors keep buying as the market absorbs that outlook. Their timing matters: flows reported after the release can extend the evidence beyond the Thursday inflow already recorded, while a completed Friday row would clarify the initial response. Bitcoin stood above $85,000 in Sunday's snapshot but below its pre-payroll $86,000 area. Sustaining a recovery toward that level with repeated fund inflows and stronger spot participation would weaken the demand concern. Another rejection without those supporting signals would strengthen it. Those combined observations would give holders firmer evidence of follow-through than a lower hike-probability estimate alone. The post Bitcoin’s $85,000 recovery awaits proof that ETF investors kept buying after payrolls appeared first on CryptoSlate .
Open source - BL
BlockNews@blocknewsdotcomPost on X ·
🚨 LATEST: Bitcoin dropped from above $87,000 to below $84,000 within hours, wiping out nearly $600 MILLION in positions. The selloff followed a weaker-than-expected U.S. jobs report, per CoinDesk. $BTC has since recovered to around $84,800. https://t.co/Z89USGtdmx
Open source - CR
Crypto Rover@cryptoroverPost on X ·
BREAKING: $BTC fell below $84,000 while $ETH nears $2,650. $250 million worth of longs liquidated in the past 4 hours. We're dumping into the weekend… https://t.co/Qk8j47RnVz
Open source - CO
CoinMarketCap@CoinMarketCapPost on X ·
ANALYSIS: 📊 Bitcoin topped $87K after a weak jobs report, then fell back down as Treasury yields rebounded. The round trip made one thing clear: Bonds are still helping drive Bitcoin. Let's break it down.👇 https://t.co/PRgPDC4u7K
Open source - CB
Crypto Briefing@Crypto_BriefingPost on X ·
🚨NOW: Bitcoin bitcoin:native drops to $84,000 after briefly surging above $87,000 following the US jobs report earlier Friday. The reversal has triggered more than $170M in long liquidations over the past hour. https://t.co/DBqOZGIeF9
Open source - KC
Kalshi Crypto@Kalshi_CryptoPost on X ·
BREAKING: Bitcoin bitcoin:native drops below $84,000 as $175M in crypto longs are liquidated in the past hour https://t.co/ceviWf3D1g
Open source - CR
CryptoSlate@CryptoSlatePost on X ·
US spot Bitcoin ETFs took in $102 million before payrolls. Incomplete Friday figures leave post-report demand unresolved. $BTC’s recovery still needs evidence of sustained buying after the initial short squeeze. https://t.co/XuWda22lPQ
Open source - BT
Bull Theory@BullTheoryioPost on X ·
INSANE VOLATILITY IN CRYPTO MARKET. Bitcoin went from $84,500 to $87,200 in just 15 hours gaining +$2700. $216 Million in shorts was liquidated during this move. Then Bitcoin started reversing just 1 hour after Unemployment data came weaker than expected. Since then Bitcoin has dropped -$3,100 wiping out $278 Million worth of longs in just 5 hours.
Open source