Bitcoin Price Hits August High as Weak Jobs Data Shifts Fed Bets

The Bitcoin price hit a new August high of $65,340 on Friday, as markets reacted to weaker-than-expected US jobs numbers. The data from the Bureau of Labor Statistics showed that the nonfarm payrolls fell by 23,000 in July, with the unemployment rate remaining at 4.1%. This unexpected decline in labor market conditions led to a shift in Federal Reserve interest-rate bets for September, with markets now favoring a pause in rate hikes.

The combination of negative July values and downward revisions in employment data boosted both crypto and US stocks. The S&P 500 index opened 0.5% higher, while the tech-heavy Nasdaq Composite Index added just over 1%. Analysts such as Fabian Dori, CIO at Sygnum Bank, noted that an orderly slowdown in payrolls could support liquidity relief, but a weak print might still pressure risk assets.

Bitcoin and altcoins demonstrated resilience in the face of bearish surprises, according to QCP Capital. Despite the fallout from the Coldcard wallet exploit and $BTC sales by corporations, option traders' expectations for a price trading-range breakdown remained limited.