Bitcoin Dives Below $80K as Strong U.S. Jobs Report Sparks Hike Fears

The U.S. nonfarm payrolls increased by 162,000 in August, exceeding expectations and causing a significant reaction in the cryptocurrency market.

Bitcoin's price dropped below $80,000 immediately after the report was released, falling from above $81,000 to below $80,000 within minutes.

This drop was attributed to the rising probability of a September Fed hike, which increased to 59% from 52%. Higher yields and a stronger dollar can reduce liquidity available for risk-sensitive markets, negatively impacting Bitcoin's price.

Martin Lee, Market Insights Lead at DWF Labs, pointed out that the jobs report strengthens the case behind Fed Chair Kevin Warsh's recent stance on the economy. He noted that a hot print would strengthen Warsh's take on the economy and grow hike fears, with $78K being the max-pain price for the September 18 expiry.