Bitcoin sinks below $86K as murky Fed outlook sparks another risk-off wave; altcoins tumble

Bitcoin extended its slide Friday, breaking to $85,700 (-6.8% as of 06:21 GMT) after briefly hitting $85,418, its lowest since April. The token is on track for a weekly drop >8%, capping a bruising run that’s seen leveraged longs unwind as key supports failed.

What’s driving the selloff

• Ambiguous U.S. jobs data: September NFP +119K with unemployment up to 4.4% muddied the growth picture, while the missing October report (shutdown fallout) leaves the Fed’s December call uncertain. Rate-cut odds were trimmed, pressuring risk assets.
• Positioning stress: Breaks below near-term support fueled forced liquidations and exposed thin liquidity, amplifying intraday swings.
• Large-holder supply: Ongoing distribution from bigger wallets, per market chatter, added to downside momentum.

Spillover across crypto

• Ether $2,810 (-7%); XRP $1.98 (-7%)
• Solana -8%, Cardano -9%, Polygon -5.6%
• Dogecoin -5.7%, $TRUMP -3.5%

MicroStrategy watch

• Strategy Inc (NASDAQ: MSTR) remains under pressure as BTC approaches the firm’s cited $74,430 average purchase basis; JP Morgan flags index-inclusion risk into the Jan 15 MSCI review that could spur passive outflows if excluded.

Key levels & next catalysts

• Spot support/resistance: $84K–$85K support zone; below that, eyes $80K psychological. Rebounds face supply near $90K–$94K.
• Macro cues ahead: Any shifts in Fed-cut odds, the delayed September payrolls print (now released), and fresh inflation signals will steer near-term direction. With the policy path “foggy,” volatility risk remains elevated.

Bottom line: Until the Fed path clears and ETF/treasury flows stabilize, crypto remains flow-driven and fragile, with bounces likely sold into unless macro data decisively re-ignite easing hopes.