Bitcoin Bounces Back from Perfect Storm of Bearish News
The price of Bitcoin has remained resilient at $80,000 despite a perfect storm of bearish news. The cryptocurrency's ability to absorb bad news is a testament to its strength.
The macro landscape is unfavorable for risk-on assets like BTC due to the renewed attacks between the US and Iran, hawkish Federal Reserve, and strong jobs data. The escalation in the Middle East has led to higher oil prices, which can feed into inflation and make the Fed's decision next week even harder.
The US central bank's stance has become increasingly hawkish, with Chair Kevin Warsh emphasizing that inflation remains too high and that the Fed could still have 'work to do.' The odds for a September rate hike jumped after the speech and went even higher after Friday's jobs report, which showed that the US economy added 162,000 jobs in August.
The two-year Treasury yield reached its highest level since January 2025, the greenback strengthened, and stocks came under pressure. Bitcoin dropped by $3,000 initially but rebounded swiftly.