Bitcoin Surges Past $65K as Weak US Jobs Data Dampen Rate Hike Bets

Bitcoin ($BTC) surged to new August highs on Friday, reaching $65,340 on Bitstamp, as markets reacted to weaker US jobs numbers. The nonfarm payrolls data from the Bureau of Labor Statistics (BLS) showed a decline of 23,000 jobs in July, with the unemployment rate at 4.1%, described as 'little changed' versus the month prior.

The combination of negative July values and downward revisions appeared to boost both crypto and US stocks, with traders linking weaker labor-market conditions with potential policy softening from the Federal Reserve. The S&P 500 index opened 0.5% higher, while the tech-heavy Nasdaq Composite Index added just over 1%. Markets are now expecting the Fed to hold interest rates at current levels at its September meeting.

Fabian Dori, CIO at Sygnum Bank, predicted that Fed chair Kevin Warsh would be influenced by the extent to which payrolls data shifted lower. 'An orderly slowdown supports the liquidity relief case, while a print weak enough to raise growth concerns can still pressure risk assets even as rate odds move,' he said.