Bitcoin Crashes Below $80,000 as Jobs Data Triggers Fed Rate Hike Expectations

A stronger-than-expected US jobs report has sent shockwaves through financial markets, causing Bitcoin to plummet below $80,000 and wiping out over $835 billion from gold, silver, and crypto within just 25 minutes.

The August employment data showed a gain of 162,000 jobs, nearly tripling the estimated 55,000. The unemployment rate held steady at 4.1%, in line with forecasts. However, this robust economic news has actually increased pressure on the Federal Reserve to raise interest rates rather than cut them.

This unexpected twist has led markets to quickly price in a higher probability of a Fed hike, causing risk assets to take a hit. President Trump weighed in, calling the reaction 'crazy' and urging the central bank to cut interest rates despite strong jobs data. However, his words may fall on deaf ears as the Fed continues to prioritize economic stability.

While most major cryptocurrencies struggled during this selloff, Zcash bucked the trend with a 13% gain, pushing its price to $1,034.80.