The price of bitcoin surged above $87,000 on Friday morning in New York, buoyed by constant exchange-traded fund flows and a jobs report showing that unemployment in the U.S. had ticked up. Bitcoin's price recently stood at $85,990 after a 2% jump over a 24-hour period, marking a more than 2% rise over the past week.
Data released Friday by the Bureau of Labor Statistics showed that nonfarm payrolls increased by 29,000 last month following a downward revision to the prior two months. Weaker-than-expected labor data typically provides a lift to riskier assets like bitcoin and stocks, which tend to experience sharper price swings.
A softer labor market generally points to lower consumer spending, which eases pressure on prices. Such conditions can make the Federal Reserve less inclined to continue raising interest rates to combat inflation. Federal Reserve Chair Kevin Warsh has noted that prices in the global economy remain too high and that the central bank is fully focused on affordability.
Bitcoin investors previously shrugged off an interest rate hike in September by climbing on the news. The cryptocurrency's broader rally began in August following an announcement from the U.S. Treasury Department regarding government debt repurchases, leading to the coin's best run in three years and its third-best August on record.
The asset has also benefited from the debasement trade, wherein investors purchase specific assets to hedge against currency devaluation as the U.S. dollar slid in value in August. Bitcoin continued its momentum with a nearly 6% rise over a 30-day period in September, leading up to October, a month historically associated with strong returns for investors.
