Bitcoin (BTC) is rising on Oct. 5 as the odds that the U.S. Federal Reserve will again raise interest rates declines.
Following a weak jobs report, financial markets are pricing in an 18% probability that the U.S. central bank will raise interest rates at its Oct. 28 policy meeting.
That’s down from 70% odds of a rate hike that markets had priced in at the end of September.
Lower interest rates are positive for risk assets such as Bitcoin and other cryptocurrencies. As a result, the price of BTC is up 1% on Oct. 5 and hovering near $86,000 U.S.
Other digital assets such as Ethereum (ETH) and Dogecoin (DOGE) are also rising as investors respond positively to the declining odds that the U.S. Fed will continue raising interest rates.
The central bank increased borrowing costs by 25 basis points in September, its first rate hike in three years, as inflation remains sticky and elevated.
However, the most recent jobs report showed that U.S. employers added only 29,000 jobs in September, much less than the 84,000 that had been expected among economists.
The U.S. unemployment rate rose to 4.2%, and wage growth slowed to its weakest pace since May 2021.
Consequently, markets are now pricing in an interest rate pause in October, benefitting Bitcoin and other cryptocurrencies.
October is historically the strongest month of the year for digital assets. In October 2025, BTC hit an al-time high of just over $126,000 U.S.
