Bitcoin Defies Perfect Storm at $80K
Bitcoin has been stuck at $80,000 for a while now, but it's not collapsing under pressure despite bearish news from all sides. The cryptocurrency is surviving a perfect storm of bad news, including escalating tensions between the US and Iran, hawkish Fed policies, and strong jobs data that suggests the central bank may raise interest rates again.
The situation is particularly dire because higher oil prices can feed into inflation, making it harder for the Fed to keep monetary policy easy. Chair Kevin Warsh emphasized at Jackson Hole last week that inflation remains too high and that the Fed could still have 'work to do.' This hawkish tone has pushed up the odds of a September rate hike, which jumped to 65% after Friday's jobs report.
The report showed that the US economy added 162,000 jobs in August, almost triple expectations, while unemployment remained unchanged at 4.1%. However, this good news for the economy is bad news for risk assets like BTC, as it reduces the hope for easier monetary policy.