Bitcoin Surges Past $86,000 Amid Renewed ETF Demand and Short Covering

Bitcoin experienced a notable surge, reclaiming the $86,000 mark by the morning of October 2, 2023. This rally was attributed to a resurgence in demand for US spot Bitcoin ETFs and short covering, which likely contributed to the upward momentum ahead of the US jobs report.

As of 08:40 UTC, Bitcoin traded at $86,325.44, marking a 3.67% increase over the past 24 hours. This rise followed a rebound above $85,000 on September 30, which had subsequently dipped below $84,000 after the release of US inflation data.

The renewed ETF demand provided a solid foundation for the rally, particularly as leveraged traders began closing bearish positions. Reports indicated that short liquidations played a significant role in accelerating Bitcoin's advance, with CoinGlass reporting approximately $70.58 billion in Bitcoin futures turnover over the previous 24 hours.

In addition to Bitcoin's performance, other major cryptocurrencies such as Ether, XRP, and Solana also saw gains, indicating a broader market recovery. On October 1, US spot Bitcoin ETFs recorded net inflows of $102.7 million, reversing the previous session's outflows and suggesting a renewed interest in Bitcoin investment.

Despite the positive momentum, inflation remains a concern, with the latest PCE report indicating core inflation at 0.2% month-over-month and 3.0% year-over-year. The upcoming US jobs report, scheduled for release at 12:30 UTC on October 2, will serve as a critical test for Bitcoin's ability to maintain its position above $86,000.

Latest Insights on Bitcoin and Market Trends

• The US 10-year Treasury yield reached 5.34% on October 1, 2023, marking the highest level since 2002.
• In Q3 2023, Bitcoin gained approximately 43%, while Ethereum surged about 71%.
• US-traded spot Bitcoin ETFs attracted around $6.3 billion in the third quarter, with Ethereum ETFs drawing about $3 billion.
• Citi has revised its 12-month Bitcoin price forecast to $113,000, up from $82,000, due to increased crypto activity and ETF inflows.
• On September 23, Bitcoin's price fell below $85,000, resulting in $135.8 million of long liquidations in just one hour.
• A study indicated that stablecoin borrowing and deposit rates are increasingly linked to US Treasury yields, particularly the 10-year yield.
• By 2030, stablecoin issuers' Treasury holdings could potentially double to around $400 billion if current growth trends continue.
• If the 10-year yield drops below 5%, it could lead to a resurgence in demand for Bitcoin and other cryptocurrencies.

New Facts on Bitcoin and Job Market

• In September, the U.S. added only 29,000 jobs, significantly lower than the expected 90,000.
• The unemployment rate increased to 4.2%, up from an expected 4.1%.
• Bitcoin surged from approximately $86,450 to nearly $87,230 following the jobs report.
• Gold prices rose from about $4,178 to $4,227 per ounce shortly after the report was released.
• In the past hour, $32.51 million in bets against Bitcoin were liquidated, with $20.5 million attributed to Bitcoin alone.
• The Federal Reserve is anticipated to make one more interest rate hike in December, despite the weak job market data.

New Insights on Bitcoin Earnings

As of October 2023, it takes the average US worker over 873 hours, or approximately five months of full-time work, to earn enough to purchase one Bitcoin (BTC). This marks a significant increase from previous years, with the time required peaking at 3,100 hours (or 18 months) projected for October 2025.

Historically, the time required to earn one BTC has fluctuated dramatically. For instance, in October 2009, it took less than one second of work, while in October 2021, it surged to 1,860 hours (11 months). The average price of BTC in July 2025 was $115,101, equating to a staggering 394 full-time working days.

These calculations are based on pre-tax and pre-living expense earnings of private sector employees, utilizing data from the US Bureau of Labor Statistics.