Bitcoin Gains 1.2% as Softer US Data Eases Rate Fears

Bitcoin rose 1.2% between Sept 28 and Oct 2, while Ethereum slipped 0.8%. Softer US inflation data cooled fears of an October Federal Reserve rate hike, but high bond yields and energy prices kept a lid on gains. Here is how the week unfolded, according to Next Trends Trading. Bitcoin and Ethereum Price Summary: Sept 28 to Oct 2 Bitcoin ended the week at US$84,510.80, up from US$83,507 on Sept 28. Ethereum closed at US$2,668.69, down from US$2,688.91. Why Did Bitcoin Rise This Week? Bitcoin's gain came from easing worries about interest rates, though the path was uneven. Early Week: Oil and Yields Weigh on Bitcoin Surging oil prices and higher US Treasury yields fuelled inflation concerns at the start of the week. Traders began to price in further Fed rate increases. Bitcoin fell 1.1% on Sept 28. It then stabilised around the US$83,000 level for the next two days. Oct 1: Softer US Inflation Data Lifts Sentiment Sentiment improved after softer US inflation data reduced expectations for an October Fed rate hike. Bitcoin rose 1.5% on Oct 1 to US$84,880.10. Ethereum also advanced, closing at US$2,706.39. Oct 2: Jobs Data Caps the Rally Bitcoin briefly climbed above US$86,000 ahead of US employment data, then gave back its gains to end the day 0.4% lower. September nonfarm payrolls rose by just 29,000. That reinforced expectations that the Fed could hold rates steady in October. However, another rise in Treasury yields limited the boost to risk assets. Why Did Ethereum Slip This Week? Ethereum followed Bitcoin higher on Oct 1 but fell harder on Oct 2. It dropped 1.4% that day, leaving it slightly lower over the five-day period. Two factors held back broader crypto risk appetite: Persistently high bond yields Elevated energy prices How US Data Affects Bitcoin and Ethereum Crypto often reacts to rate expectations, so macro data can move prices quickly. Inflation data: Softer readings lower the odds of a rate hike, which tends to support risk assets such as Bitcoin. Employment data: Weak payrolls suggest the Fed may pause, but they can also raise concerns about growth. Treasury yields: Rising yields make safer assets more attractive and can limit crypto gains. Oil prices: Higher energy costs feed inflation worries and can delay rate relief. What to Watch Next Upcoming US inflation and jobs releases Treasury yield direction Oil and energy price trends Fed commentary ahead of its October decision Bitcoin's reaction near the US$86,000 level and support around US$83,000 This article is a market recap, not financial advice. Verify current prices and Fed decisions with live, authoritative sources before making any trading decision. Frequently Asked Questions How much did Bitcoin gain this week? Bitcoin gained 1.2%, rising from US$83,507 on Sept 28 to US$84,510.80 on Oct 2. Why did Bitcoin rise despite weak jobs data? Softer inflation data earlier in the week eased fears of a Fed rate hike, which lifted sentiment. Rising Treasury yields limited the gains. Did Ethereum rise or fall this week? Ethereum slipped 0.8%, from US$2,688.91 to US$2,668.69. It fell 1.4% on Oct 2. Will the Fed raise rates in October? Expectations for a hike eased after softer inflation data and weak payrolls. A final decision rests with the Fed, so check current announcements. What were September nonfarm payrolls? Payrolls rose by just 29,000, reinforcing expectations that the Fed could keep rates unchanged in October. Did Bitcoin go above US$86,000? Yes, briefly on Oct 2 ahead of US employment data, but it gave back those gains and ended the day 0.4% lower. Why do bond yields affect crypto prices? Higher yields make lower-risk assets more appealing, which can reduce demand for risk assets such as Bitcoin and Ethereum. Conclusion Bitcoin finished the week higher as softer US data eased rate hike fears, while Ethereum ended slightly lower under pressure from bond yields and energy prices. For more market recaps, follow Next Trends Trading.