Bitcoin Defies Bearish Odds at $80K
The Bitcoin price has been hovering around $80,000 for some time now, and despite various attempts to break above this level, it remains intact.
This resilience is all the more remarkable given the current macroeconomic landscape, which is anything but bullish. The recent escalation in tensions between the US and Iran has led to a surge in oil prices, with Brent crude climbing towards $100 per barrel again.
The higher oil prices can directly feed into inflation, making the Federal Reserve's decision next week even harder. Chair Kevin Warsh emphasized that inflation remains too high at Jackson Hole last week, indicating that the Fed could still have 'work to do'. The odds for a September rate hike jumped after this speech and went even higher after Friday's jobs report.
The US economy added 162,000 jobs in August, almost triple expectations of 56,000, while unemployment remained unchanged at 4.1%. Although this is good news for the economy, risk assets do not benefit as the hope for easier monetary policy fades given the higher inflation.