Bitcoin Exchange Balances Normalize Amid Strong Employment Report

Bitcoin held its ground above $79,000 throughout the Labor Day holiday period despite a strong employment report and rising rate hike expectations. The probability of a Federal Reserve rate hike rose from 50% to 60%, but downside remained limited.

The decline in exchange balances is notable as it occurred during a consolidation phase rather than an uptrend. Approximately 8,073 BTC flowed out of tracked exchanges in the days following September 3, with exchange balances falling below levels seen before the Coldcard hacking incident.

U.S. spot Bitcoin ETFs attracted inflows of approximately $730 million on September 3, the largest single-day inflow since January 14. An additional $174.6 million flowed in on Friday, bringing the two-session total to approximately $904.6 million.