Bitcoin climbed to a fresh August high above $65,000 on Friday as cryptocurrencies and other risk assets reacted positively to weaker-than-expected U.S. employment data.
BTC reached $65,340 on Bitstamp around the Wall Street open, gaining roughly 1.3% on the day.
The move followed the release of July nonfarm payroll figures, which pointed to growing weakness in the U.S. labor market.
U.S. Economy Loses 23,000 Jobs in July
The U.S. economy lost 23,000 jobs in July, according to data from the Bureau of Labor Statistics.
The unemployment rate came in at 4.1%, which officials described as broadly unchanged from the previous month.
Previous employment figures were also revised sharply lower.
May payroll growth was reduced by 66,000, from 129,000 to 63,000. June’s figure was cut by 37,000, from 57,000 to just 20,000.
Combined, employment growth for May and June was therefore 103,000 lower than previously estimated.
The weaker figures added to concerns that momentum in the U.S. labor market may be slowing faster than expected.
Bitcoin and Stocks Rise as Fed Expectations Shift
The combination of July job losses and significant downward revisions helped lift both cryptocurrencies and U.S. equities.
Investors interpreted the weaker labor-market data as a potential reason for the Federal Reserve to adopt a softer approach to monetary policy.
The S&P 500 opened around 0.5% higher, while the technology-heavy Nasdaq Composite gained slightly more than 1%.
Bitcoin and several major altcoins also moved higher as appetite for risk assets improved.
Fed Rate Hike Bets Fade Ahead of September Meeting
Expectations for the Federal Reserve’s September policy meeting shifted significantly following the employment report.
According to the CME FedWatch Tool, markets are now largely pricing in unchanged interest rates at the next meeting.
Only a day earlier, traders had assigned the highest probability to a 25-basis-point interest rate increase.
The rapid shift highlights how closely investors are watching U.S. labor-market data when assessing the future direction of monetary policy.
Lower interest-rate expectations can support Bitcoin and other risk assets by improving financial conditions and increasing the relative appeal of speculative investments.
Jobs Report Could Shape Jackson Hole Outlook
Before the employment figures were released, Bitget Research chief analyst Ryan Lee said the report could play an important role in setting expectations for the Federal Reserve’s September meeting.
The data may also influence the central bank’s annual Jackson Hole economic symposium later in August.
Fabian Dori, chief investment officer at Sygnum Bank, noted that the impact on markets could depend on how investors interpret the slowdown.
A gradual cooling of employment conditions could strengthen the case for easier monetary policy.
However, significantly weaker data could also raise concerns about economic growth and eventually put pressure on risk assets, even if expectations for higher interest rates decline.
Bitcoin Shows Resilience Despite Bearish Headlines
QCP Capital described the broader macroeconomic environment for Bitcoin as uncertain in its latest market update.
However, the trading firm highlighted the resilience of cryptocurrency prices following a week that included several negative developments.
According to QCP, recent price action suggests that crypto markets have remained relatively stable rather than establishing a clear new direction.
The firm’s assessment indicates that investors have so far avoided a major shift toward defensive positioning.
Crypto Market Absorbs Recent Selling Pressure
Bitcoin has also faced pressure from several crypto-specific developments.
These included concerns surrounding the Coldcard wallet exploit as well as Bitcoin sales from corporate holders, including Strategy.
Despite those events, QCP Capital noted that demand for downside protection in the options market remained limited.
That suggests traders have not rushed to hedge against a major Bitcoin decline.
The reaction supports the view that Bitcoin and the broader crypto market have shown notable resilience despite recent bearish catalysts.
Bitcoin Traders Focus on Fed Policy and Labor Market
Bitcoin’s move above $65,000 shows how closely cryptocurrency markets remain tied to developments in the U.S. economy.
For now, weak employment data has reduced expectations for another Federal Reserve rate hike and supported demand for risk assets.
However, the outlook remains sensitive to upcoming economic releases and signals from Fed policymakers.
Traders will therefore be watching future inflation and employment figures, as well as the Jackson Hole symposium, for clues about the direction of U.S. monetary policy.
For Bitcoin, the key question is whether improving liquidity expectations can turn the latest move above $65,000 into a more sustained rally.
