Bitcoin Surges Past $87,000 on Weaker Jobs Data and ETF Inflows

Bitcoin's price surged above $87,000 on October 2, buoyed by steady exchange-traded fund flows and softer-than-expected jobs data. The nonfarm payrolls increased 29,000 last month after a downward revision to the prior two months, according to Bureau of Labor Statistics data.

The unemployment rate in the U.S. remained near 4.2%, which may ease Federal Reserve rate-hike expectations and support risk assets like Bitcoin. Weaker labor-market metrics typically mean less consumer spending, easing pressure on prices, making it less likely for the Fed to keep raising interest rates to fight inflation.

Bitcoin investors have been shrugging off the central bank's interest rate hike in September, with the largest cryptocurrency climbing on the news. The coin started rallying in August after the U.S. Treasury Department announced plans to more than double the size of its government debt repurchases, which has benefited from the so-called debasement trade.

Bitcoin's price has also been driven by a historically positive trend for the asset, dubbed 'Uptober', with October delivering good returns for investors in previous years. The spot price stood at $85,990 after a 2% jump over a 24-hour period and a >2% weekly gain.