Bitcoin's price climbed past $87,000 on Friday morning in New York. This movement followed the release of U.S. labor market data, which showed an unemployment rate of 4.2 percent, exceeding market expectations. Additionally, nonfarm payrolls grew by 29,000 last month, following downward revisions for the previous two months.
The asset saw a 2 percent increase over a 24-hour period, reaching $85,990, and has gained more than 2 percent over the past week. Market analysts suggest that weaker labor data can support risk assets like bitcoin, as it may influence the Federal Reserve's stance on interest rates. Investors are monitoring these trends amid ongoing concerns regarding inflation and affordability.
The cryptocurrency has also been supported by consistent inflows into exchange-traded funds. Earlier in the year, the asset experienced a rally starting in August, following the U.S. Treasury Department's announcement to more than double the size of its government debt repurchases. This period marked the coin's best performance in three years.
Current market activity is also linked to the debasement trade, where investors utilize specific assets to hedge against the devaluation of the U.S. dollar. Historically, October has been a strong month for bitcoin performance, a trend often referred to by traders as Uptober. The market continues to react to macroeconomic indicators and central bank policies.
