Bitcoin Climbs Above $86,000 for First Time Since January as Fed Decision Looms

Bitcoin rose above $86,000 in early October for the first time since January. Traders were positioning ahead of the U.S. jobs report and a Federal Reserve meeting later this month. The rally follows a sharp recovery from this year's lows and has revived debate over how long the momentum can last.

Bitcoin and Ethereum Rise Ahead of Jobs Data

According to Yahoo Finance, Bitcoin opened at $84,849.93 on October 2, up 1.6% from the previous day's open. By 7:25 a.m. ET it had reached $86,459.67. Ethereum opened at $2,705.58, up 0.8%.

Yahoo Finance reported that a wave of short liquidations and easing Treasury yields helped lift prices. Citigroup's higher price target for Bitcoin also added to the momentum.

Bitcoin Climbs Above $86,000 for First Time Since January as Fed Decision Looms

Bitcoin rose above $86,000 in early October for the first time since January. Traders were positioning ahead of the U.S. jobs report and a Federal Reserve meeting later this month. The rally follows a sharp recovery from this year's lows and has revived debate over how long the momentum can last.

Bitcoin and Ethereum Rise Ahead of Jobs Data

According to Yahoo Finance, Bitcoin opened at $84,849.93 on October 2, up 1.6% from the previous day's open. By 7:25 a.m. ET it had reached $86,459.67. Ethereum opened at $2,705.58, up 0.8%.

Yahoo Finance reported that a wave of short liquidations and easing Treasury yields helped lift prices. Citigroup's higher price target for Bitcoin also added to the momentum.

Citigroup Raises Price Targets

A day earlier, on October 1, Citigroup raised its 12-month Bitcoin target to $113,000 from $82,000, a rise of about 38%, according to Reuters as cited by Yahoo Finance. The bank also lifted its Ethereum target to $3,028 from $2,240.

Citigroup pointed to stronger market activity, a more supportive macroeconomic backdrop and the return of inflows into exchange-traded funds.

ETF Inflows Return, but Daily Flows Faded

Crypto.com reported that spot Bitcoin ETFs took in $2.4 billion in the penultimate week of September, their strongest week since October 2025. That moved 2026 flows back into positive territory, at roughly $934 million, after a deficit of $5.8 billion as recently as July 13.

Daily inflows weakened during that week, however. They fell from $999 million on Monday to $134 million on Friday, according to the same report.

Bitcoin Remains Below Its Record

Despite the recent gains, Bitcoin is still about a third below its all-time high of $126,198.07, set in October 2025. Crypto.com said Bitcoin rose roughly 25% in August and about 7% in September, the first back-to-back gains for those two months.

Bitcoin's 2026 low was $58,555 on June 30, according to 24/7 Wall St. The same outlet noted that it has since climbed to about $85,896.

What Could Move Prices Next

The Federal Reserve meets on October 27 and 28. Crypto.com said market projections for a second rate increase had risen above 70%, up from 64% a week earlier. It linked the shift to comments from Fed Governor Michael Barr that policymakers "have more work to do", along with a hotter inflation reading.

Analysts quoted by 24/7 Wall St. also named high oil prices and uncertainty around the Strait as risks for Bitcoin this month. They said a rate increase combined with elevated oil could push prices back toward the mid-September lows, while a more cautious Fed or stronger ETF activity could take Bitcoin toward $90,000.

On the Ethereum side, Crypto.com said the network's Glamsterdam upgrade was expected to reach its first public test network on October 6.

Cryptocurrency prices are highly volatile, and the figures above reflect early October trading. Readers should check current market data before making any investment decision.

A day earlier, on October 1, Citigroup raised its 12-month Bitcoin target to $113,000 from $82,000, a rise of about 38%, according to Reuters as cited by Yahoo Finance. The bank also lifted its Ethereum target to $3,028 from $2,240.

Citigroup pointed to stronger market activity, a more supportive macroeconomic backdrop and the return of inflows into exchange-traded funds.

ETF Inflows Return, but Daily Flows Faded

Crypto.com reported that spot Bitcoin ETFs took in $2.4 billion in the penultimate week of September, their strongest week since October 2025. That moved 2026 flows back into positive territory, at roughly $934 million, after a deficit of $5.8 billion as recently as July 13.

Daily inflows weakened during that week, however. They fell from $999 million on Monday to $134 million on Friday, according to the same report.

Bitcoin Remains Below Its Record

Despite the recent gains, Bitcoin is still about a third below its all-time high of $126,198.07, set in October 2025. Crypto.com said Bitcoin rose roughly 25% in August and about 7% in September, the first back-to-back gains for those two months.

Bitcoin's 2026 low was $58,555 on June 30, according to 24/7 Wall St. The same outlet noted that it has since climbed to about $85,896.

What Could Move Prices Next

The Federal Reserve meets on October 27 and 28. Crypto.com said market projections for a second rate increase had risen above 70%, up from 64% a week earlier. It linked the shift to comments from Fed Governor Michael Barr that policymakers "have more work to do", along with a hotter inflation reading.

Analysts quoted by 24/7 Wall St. also named high oil prices and uncertainty around the Strait as risks for Bitcoin this month. They said a rate increase combined with elevated oil could push prices back toward the mid-September lows, while a more cautious Fed or stronger ETF activity could take Bitcoin toward $90,000.

On the Ethereum side, Crypto.com said the network's Glamsterdam upgrade was expected to reach its first public test network on October 6.

Cryptocurrency prices are highly volatile, and the figures above reflect early October trading. Readers should check current market data before making any investment decision.