Bitcoin enters its first institutional cycle, SALT's Shawn Owen says
SALT Lending's Shawn Owen says banks and credit unions are rushing into bitcoin as institutional demand builds.
Bitcoin surged above $87,000 after US jobs data showed unemployment ticking higher, fueling expectations of looser Fed policy.
The price of bitcoin moved above $87,000 on Friday in New York trading, helped by steady exchange-traded fund inflows and a labor market report that showed a rise in US unemployment.
Bitcoin was recently changing hands at $85,990, a 2% gain over the previous 24 hours. It has also added more than 2% over the past seven days.
Nonfarm payrolls rose by 29,000 last month, following a downward revision to the preceding two months, according to data released Friday by the Bureau of Labor Statistics.
JUST IN: Bitcoin jumps to $87,000 as U.S. Unemployment Rate comes in at 4.2%, higher than expectations pic.twitter.com/jqtU8Q9zsd
— Bitcoin Magazine (@BitcoinMagazine) October 2, 2026
Weaker-than-expected employment data can lift riskier assets such as bitcoin and equities, which tend to experience wider price swings.
A softer jobs market typically translates into lower consumer spending, reducing upward pressure on prices. That could make the Federal Reserve less likely to continue raising interest rates to combat inflation.
Many economists and politicians have described the US as facing an affordability crisis, a subject that is prominent ahead of the November midterm elections.
The new Federal Reserve chair, Kevin Warsh, has stated that prices in the largest economy are too high and that the central bank is fully committed to making living costs more affordable again.
Bitcoin investors dismissed the central bank’s September interest rate increase, with the cryptocurrency rising on the news.
The largest digital currency began gaining in August after the US Treasury Department announced it would more than double the scale of its government debt buybacks. That month delivered the coin's best performance in three years and its third-strongest August on record.
The price has been supported by the so-called debasement trade, in which investors buy assets to hedge against currency depreciation. The dollar weakened in August.
September was also positive for bitcoin, with a gain of nearly 6% over 30 days.
October has historically been a strong month for bitcoin returns, a pattern traders refer to as “Uptober.”
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Disclaimer: this article comes from third-party media and is provided for reference only. It does not constitute investment advice. Crypto and other financial products carry significant price volatility risk, so please make your own decisions carefully.
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