Bitcoin Surges Past $65K as Weak Employment Data Shifts Fed Rate Expectations

Bitcoin's price surged past $65,000 on August 7, marking its highest point of the month, after disappointing US employment statistics caused a shift in market expectations regarding Federal Reserve monetary policy decisions.

The US Bureau of Labor Statistics reported that nonfarm payrolls declined by 23,000 during July, significantly underperforming the consensus forecast of an 85,000 job addition. This represented the first negative monthly employment change since February.

As a result, the probability of a 0.25% rate increase at the Fed's September policy meeting dropped from 55% to approximately 42%, according to CME FedWatch Tool data.