TL;DR
- Bitcoin surpassed $86,000 with a 3.6% gain, and its dominance in the crypto market is approaching 60% for the first time in months.
- USDT’s market share fell to 6.3%, a signal that traders are exiting cash positions to take on more risk.
- Open interest in BTC rose to $22.4 billion and funding rates climbed to 9–10% annualized on platforms like Hyperliquid and OKX.
The crypto market kicked off October with a bullish tone and appetite for risk. Bitcoin surpassed $86,000 in the early hours of October 2, accumulating a 3.6% gain in 24 hours, while other cryptocurrencies such as Ethereum, XRP, and BNB also posted gains, though without matching BTC’s pace.
The sharpest jumps occurred further down the rankings: SKY, AAVE, and APT rose between 7% and 10%, cementing themselves as the top performers among the 100 largest cryptocurrencies by market capitalization.
Bitcoin Dominance and the Retreat From Crypto Cash
Two indicators captured analysts’ full attention. Bitcoin dominance —that is, its share of the total market— is approaching 60%, while the share of USDT, the leading dollar-pegged stablecoin, fell to 6.3%. This combination suggests that crypto traders are reducing their cash positions and rotating into higher-risk assets, a dynamic that historically anticipates expansionary market phases.
Meanwhile, the September non-farm payrolls report, also published on the same day, estimated the creation of 90,000 jobs, below August’s 162,000, with an expected unemployment rate of 4.1%, according to the FactSet consensus. This figure is relevant because markets closely watch its effect on Treasury yields, particularly those adjusted for inflation.
Key Levels to Watch Closely
Oliver Carding, Chief Marketing Officer at Tesseract Group —a firm managing $500 million in assets— noted that he monitors the 10-year real yield with a threshold of 3%: a sustained move above that level would make a retest between $80,000 and $82,000 more likely than a push toward $90,000.
The probability of a rate hike in October fell from 70% to 30% following dovish remarks from New York Federal Reserve President John Williams and Fed Vice Chair Philip Jefferson. That reduction generally favors risk assets such as Bitcoin and other cryptocurrencies.
In the derivatives market, open interest in BTC rose to $22.4 billion from $20.9 billion the previous day. Funding rates reached between 9% and 10% annualized on Hyperliquid and OKX. Coinglass data recorded $344 million in liquidations over 24 hours, and the Binance heatmap points to $87,400 as a key level to monitor in the event of a further extension of the rally.
