Bitcoin climbed to a fresh August high above $65,000 on Friday as weaker-than-expected US employment data boosted expectations that the Federal Reserve may maintain or ease its current interest-rate stance.
BTC reached around $65,340, gaining approximately 1.3% on the day as traders reacted to the latest US labor-market figures.
The US economy reportedly lost 23,000 jobs in July, while the unemployment rate stood at 4.1%.
Adding to the weakness, previous employment figures were revised lower. May payroll growth was revised down by 66,000 jobs, while June figures were reduced by 37,000. Combined employment for May and June was therefore 103,000 lower than previously reported.
The weaker labor-market data prompted investors to reassess expectations for the Federal Reserve’s September policy meeting.
Market expectations shifted toward the Fed holding interest rates at current levels, compared with expectations for a 0.25% rate hike that had dominated just a day earlier.
The softer employment figures also supported broader risk assets.
The S&P 500 opened about 0.5% higher, while the Nasdaq Composite gained more than 1%, as investors interpreted the weaker labor market as potentially reducing pressure on the Federal Reserve to tighten monetary policy.
For Bitcoin, expectations of easier financial conditions can be supportive because lower or stable interest rates generally improve liquidity conditions and investor appetite for risk assets.
Despite several negative developments during the week, Bitcoin and other cryptocurrencies have remained relatively resilient.
QCP Capital described the broader crypto market as uncertain but said recent price action pointed toward resilience rather than a clear directional trend.
The firm noted that the fallout from the Coldcard wallet exploit and Bitcoin selling by corporate holders had generated only limited demand for downside protection in the options market.
With Bitcoin now testing the $65,000 level, traders are closely watching upcoming US economic data and Federal Reserve signals for further clues about the cryptocurrency’s next major move.
