Bitcoin (BTC) reached fresh August highs heading into Friday's Wall Street open, as markets responded to softer-than-expected US employment figures.

Crypto and risk assets advanced after US nonfarm payrolls declined by 23,000 in July. Market expectations for the Federal Reserve's September meeting shifted from a 0.25% rate hike to a pause, reflecting signs of a cooling labor market. The pivot underscored how tightly Bitcoin and digital assets now trade in step with macroeconomic data, as market participants increasingly position BTC around shifts in expected dollar liquidity. According to QCP Capital, Bitcoin and altcoins demonstrated "resilience" following a week of bearish surprises.

Crypto and Stocks Rise on Weak Payrolls Print

TradingView data showed BTC/USD reaching $65,340 on Bitstamp, up 1.3% on the day, as the latest US labor-market figures were released.

According to nonfarm payrolls data from the Bureau of Labor Statistics (BLS), the US economy shed 23,000 jobs in July, while the unemployment rate held at 4.1% — figures the agency described as "little changed" from the prior month.

"The change in total nonfarm payroll employment for May was revised down by 66,000, from +129,000 to +63,000, and the change for June was revised down by 37,000, from +57,000 to +20,000. With these revisions, employment in May and June combined is 103,000 lower than previously reported," an official BLS statement noted.

The combination of negative July figures and downward revisions appeared to lift both crypto and US equities, as traders connected weaker labor-market conditions with the potential for policy easing from the Federal Reserve. A cooling labor market reduces the pressure on the Fed to maintain a restrictive stance, since maximum employment forms part of its dual mandate alongside price stability.

The S&P 500 opened 0.5% higher, while the tech-focused Nasdaq Composite Index gained just over 1%.

Data from CME Group's FedWatch Tool showed markets now anticipating the Fed to hold interest rates at current levels at its September meeting. As recently as the previous day, majority odds had favored a 0.25% rate hike.

Ahead of the employment data release, Ryan Lee, chief analyst at Bitget Research, stated that the report would "set the tone" for both the September Federal Open Market Committee meeting and the Fed's annual Jackson Hole economic symposium, scheduled for late August. The Jackson Hole symposium, hosted by the Federal Reserve Bank of Kansas City in Wyoming, has historically served as a venue where Fed chairs signal coming policy shifts to global markets.

Fabian Dori, CIO at Sygnum Bank, predicted that Fed chair Kevin Warsh would be influenced by the degree to which payrolls data came in 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," Dori said in comments shared with Cointelegraph.

Analysts Cite Bitcoin and Altcoin "Resilience"

In its latest crypto and macro overview published the same day, trading firm QCP Capital characterized the macroeconomic environment as "uncertain" for Bitcoin.

"For crypto, the week's price action points to resilience rather than clear directional confirmation," the firm summarized.

QCP noted that the fallout from the Coldcard wallet exploit, along with BTC sales by corporations including Strategy, had triggered only "limited demand for panic protection" in the options markets.

Cointelegraph previously reported on options traders' expectations for a BTC price trading-range breakdown to occur next month.

Related: Bitcoin price-metric basket sees longest capitulation since FTX blow-up: Glassnode