23K Jobs Gone, $BTC Still Won: Soft Payrolls Send Bitcoin Past $65K �➡️📈

The U.S. economy shed 23,000 nonfarm jobs in July, marking the third-largest monthly decline since 2020 and falling well short of economist expectations for an addition of up to 80,000 positions, according to Bureau of Labor Statistics data. The July figure also represents a sharp reversal from June, when the economy added 57,000 jobs, a number that was itself revised downward by 37,000 in the latest report. The unemployment rate, however, ticked down to 4.1% from June's 4.2%, beating consensus forecasts of 4.2%.

Bitcoin climbed above $65,000 in the hours following the release, trading near that level as traders weighed the implications for Federal Reserve policy. The softer payrolls print, paired with the downward revision to June, has been read by market participants as evidence of continued labor market cooling. Crypto and macro analysts cited the data as a factor strengthening the case for a rate cut at the next Federal Open Market Committee meeting.

Beyond the headline payrolls figure, the July report carried revisions to prior months and updates to the labor force participation rate, components the BLS publishes alongside its Employment Situation summary. The unemployment rate's decline to 4.1%, despite the net job loss, reflects an increase in the size of the labor force alongside a drop in the number of unemployed persons, per the BLS methodology. Wage growth and average hourly earnings data, also released in the report, provided additional context on labor market conditions.

Bitcoin's move came amid a broader risk-on reaction across digital assets, with traders monitoring macro catalysts ahead of upcoming inflation prints. The July jobs report is the first of two major labor market releases the BLS will publish before the next FOMC decision, and revisions to prior months will be closely watched in subsequent updates.