During the New York session on Friday, the price of Bitcoin broke through $87,000, driven by continuous inflows of funds into exchange-traded funds (ETFs) and an employment report showing an increase in the U.S. unemployment rate.
Bitcoin has recently reached $85,990, up 2% in the past 24 hours. Over the past week, its value has also increased by more than 2%.
Data released by the U.S. Bureau of Labor Statistics on Friday showed that after revising the figures for the previous two months, non-farm employment increased by 29,000 last month.
Employment data that falls short of expectations usually boosts risky assets such as Bitcoin and stocks, which tend to experience greater price volatility.
A softer labor market usually means reduced consumer spending, which in turn alleviates price pressures. This might make the Federal Reserve less inclined to continue raising interest rates to combat inflation.
Many economists and politicians have stated that the United States is in a crisis of affordability, and this topic has received significant attention ahead of the mid-term elections in November.
The new chairman of the Federal Reserve, Kevin Warsh ( Kevin Warsh ), stated that prices in the world's largest economy are too high, and the central bank is making every effort to make life more affordable again.
Bitcoin investors remained indifferent to the central bank's interest rate hike in September, and the price continued to rise after the announcement.
This largest cryptocurrency began to rebound in August, following the announcement by the U.S. Treasury Department that it would more than double the scale of its government debt repurchase program. The coin recorded its best performance in three years that month, as well as its third-best performance for August in all time.
The price of this coin also benefits from what is known as “devaluation trading”: investors buy certain assets to hedge against the risk of currency devaluation. The US dollar weakened in August.
Bitcoin continued to perform well in September, rising by nearly 6% within 30 days.
Historically, October has usually brought good returns to Bitcoin investors, a phenomenon that traders refer to as “Uptober”.
