Bitcoin's price surged above $87,000 on Friday morning in New York, buoyed by steady exchange-traded fund flows and a monthly jobs report showing that unemployment in the United States had ticked up.

Spot bitcoin ETFs, which began trading on U.S. exchanges in January 2024 and hold the asset directly, have made fund flows one of the most closely watched gauges of investor demand for the cryptocurrency.

The largest cryptocurrency recently stood at $85,990 after a 2% jump over a 24-hour period, and it has risen by more than 2% over the past week.

Data from the Bureau of Labor Statistics released on Friday showed that nonfarm payrolls increased 29,000 last month, following downward revisions to the prior two months. The unemployment rate came in at 4.2%, higher than expectations.

JUST IN: Bitcoin jumps to $87,000 as U.S. Unemployment Rate comes in at 4.2%, higher than expectations pic.twitter.com/jqtU8Q9zsd
— Bitcoin Magazine (@BitcoinMagazine) October 2, 2026

Traders widely view employment figures as a key input for Federal Reserve policy decisions. The central bank operates under a congressional mandate to pursue both stable prices and maximum employment, and with rate decisions hinging on incoming data, each new inflation and labor market release is scrutinized for clues about its next steps. Weaker-than-expected jobs data can give a lift to riskier assets like bitcoin and stocks, whose prices tend to swing more sharply. A softer labor market typically means less consumer spending, which eases pressure on prices. In turn, that could make the Federal Reserve less inclined to keep raising interest rates to fight inflation.

Many economists and politicians have said the U.S. is in the midst of an affordability crisis, and the topic is a hot one ahead of the November midterm elections. Kevin Warsh, the Federal Reserve's new chair, has said that prices in the world's biggest economy are too high and that 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, with the price climbing on the news.

The largest cryptocurrency started rallying in August on news that the U.S. Treasury Department said it would more than double the size of its government debt repurchases. Buybacks, a tool the Treasury revived in 2024, are used to support liquidity in the market for government debt. The coin had its best run in three years and its third-best August ever.

Bitcoin has also benefited from the so-called debasement trade, in which investors buy certain assets to hedge against currency being devalued. The dollar slid in value in August. The cryptocurrency then went on to have a strong September, rising nearly 6% over a 30-day period.

October has historically delivered good returns for bitcoin investors, a seasonal pattern that traders have long dubbed “Uptober.”

This article first appeared on Bitcoin Magazine and was written by Mathew Di Salvo.