Bitcoin Crashes $2,000 After Blowout Jobs Report Fuels Rate Hike Fears
The US economy's strong August jobs report sent shockwaves through financial markets, causing Bitcoin to plummet in value. The cryptocurrency had reached an all-time high of over $81,000 before the news broke, but its price dropped immediately by $2,000 to $79,200.
According to data from the Bureau of Labor Statistics, the US economy added a staggering 162,000 jobs in August, far exceeding expectations. This robust job growth gives the Federal Reserve more room to keep monetary policy tight, which may spell trouble for risk-on assets like Bitcoin.
The strong labor market weakens one argument against keeping interest rates unchanged: that the US labor market needs protection from tighter monetary policy. Higher interest-rate expectations typically push Treasury yields and the greenback north while reducing the relative appeal of risk assets.