Bitcoin surges above $87,000 as US unemployment rises

Bitcoin surged above $87,000 on Friday morning in New York, supported by steady exchange-traded fund flows and a jobs report showing higher US unemployment. Bitcoin recently traded at $85,990 after rising 2% over 24 hours. Bitcoin also gained more than 2% over the past week. Bureau of Labor Statistics data released Friday showed that nonfarm payrolls increased by 29,000 last month after downward revisions to the prior two months. Weaker-than-expected jobs data can support riskier assets such as bitcoin and stocks, whose prices tend to fluctuate more sharply. A softer labor market typically reduces consumer spending, easing pressure on prices. Lower inflation pressure could make the Federal Reserve less inclined to keep raising interest rates to fight inflation. Many economists and politicians have said the US is experiencing an affordability crisis. Affordability is a prominent issue ahead of the November midterm elections. The Federal Reserve's new chair, Kevin Warsh, has said prices in the world's largest economy are too high. Warsh has said the central bank is fully focused on making life more affordable again. Bitcoin investors shrugged off the central bank's interest rate hike in September. Bitcoin, the largest cryptocurrency, began rallying in August following the US Treasury Department's announcement that the department would more than double government debt repurchases. Bitcoin recorded its best run in three years and its third-best August ever. Bitcoin's price has benefited from investors buying assets to hedge against currency devaluation. The dollar declined in value in August. Bitcoin continued performing well in September, rising nearly 6% over a 30-day period. October has historically delivered good returns for bitcoin investors.