Bitcoin reached its highest price point of August on August 7, propelled by weaker-than-expected US employment data that prompted markets to recalibrate expectations for Federal Reserve monetary policy. Bitcoin, like other risk assets, has historically been sensitive to shifts in rate expectations, as monetary policy decisions influence broader liquidity conditions that affect investor appetite for higher-volatility assets.

According to TradingView data, BTC/USD touched $65,340 on the Bitstamp exchange, representing a 1.3% gain during the trading session. The cryptocurrency was on track to close the week with gains exceeding 3%.

The advance followed the US Bureau of Labor Statistics' release of July employment figures showing nonfarm payrolls declined by 23,000 — well below the consensus forecast of an 85,000-job increase and the first negative monthly employment change since February.

BREAKING: The US economy unexpectedly loses -23,000 jobs in July, well below expectations of +85,000. The unemployment rate fell to 4.1%, below expectations of 4.2%. June's jobs number was also revised down by -37,000 jobs. This marks the 3rd biggest monthly job loss since the… — The Kobeissi Letter (@KobeissiLetter) August 7, 2026

The unemployment rate edged lower to 4.1% from June's 4.2% reading. Compounding the softer headline number, employment data for May and June was revised downward by a combined 103,000 positions, reinforcing the view that labor market conditions are softening more rapidly than previously assessed.

Federal Reserve Rate Expectations Adjust

Financial markets responded quickly to the labor report. CME FedWatch Tool data indicated the probability of a 0.25% rate increase at the Fed's September policy meeting fell from 55% the prior day to roughly 42% following the data release. As the session progressed, market expectations increasingly tilted toward the Fed holding interest rates steady in September.

JPMorgan chief US economist Michael Feroli stated that the employment numbers should "marginally lower the chances of a hike at the next meeting," while noting that upcoming inflation readings over the following two months would carry greater significance for the Fed's policy decision. The next Consumer Price Index report and the Federal Open Market Committee's September meeting will be closely watched by crypto and broader financial markets for further policy signals.

Equities also moved higher on the news. The S&P 500 opened 0.5% higher, while the Nasdaq posted gains just above 1%.

Market analyst Daan Crypto Trades observed on X that Bitcoin's Bull Market Support Band and the Weekly 200 EMA have converged near the $69,000 level. A weekly close in the 70K range from that position would represent a powerful market signal, he suggested, adding that the ongoing consolidation would ultimately produce a "large break from compression."

$BTC Now has its Bull Market Support band and Weekly 200EMA line up perfectly at the $69K area. If price were to test that, it will be a big test and any closes into the 70Ks and the market is so back. Below, bitcoin has been hanging onto its Weekly 200MA with marginally higher… pic.twitter.com/gQzZJ0XLWU — Daan Crypto Trades (@DaanCrypto) August 7, 2026

Spot ETF Inflows Extend Multi-Day Streaks

US spot Bitcoin ETFs registered $98.85 million in net positive flows on August 7, according to SoSoValue data referenced by Wu Blockchain. The figure marked the fifth consecutive trading session of net inflows for US spot Bitcoin products. US spot Ether ETFs also drew $49.60 million in fresh capital, extending their own positive-flow streak to a fourth straight day. Spot Bitcoin ETFs, which launched in the United States in January 2024, have become a significant channel for institutional and retail exposure to Bitcoin without the need for direct custody, and their flow trends are now widely tracked as an indicator of demand from traditional finance.

U.S. Spot Bitcoin ETFs Record $98.85M in Net Inflows, Extend Streak to Five Days According to SoSoValue data, U.S. spot Bitcoin ETFs recorded $98.85 million in net inflows on August 7 (ET), marking a fifth consecutive trading day of net inflows. U.S. spot Ether ETFs also saw… pic.twitter.com/QCYOZWFTdm — Wu Blockchain (@WuBlockchain) August 8, 2026

QCP Capital Points to Market Resilience

Trading firm QCP Capital characterized the cryptocurrency market's weekly performance as demonstrating "resilience rather than clear directional confirmation." The firm noted that events such as the Coldcard wallet security breach and Bitcoin sales by entities including Strategy generated only limited concern in options markets.

Throughout the week, Bitcoin primarily traded within a $62,000 to $65,000 corridor, with the $65,340 peak marking the upper boundary of that range.