Bitcoin Holds Steady Near $80K Amid Rate Hike Bets and ETF Inflows
Bitcoin's price has stabilized around $80,000 after briefly dipping below this level last week. The cryptocurrency has demonstrated resilience in the face of stronger-than-expected US employment data and rising Treasury yields.
The August jobs report showed a gain of 162,000 jobs, exceeding the forecasted 55,000. This has led to increased expectations for a Federal Reserve interest rate hike at its September 16 meeting, with CME's FedWatch tool indicating a 60% probability of a 25-basis-point increase.
Despite this, Bitcoin and other rate-sensitive assets have been affected by higher Treasury yields and a stronger US dollar. However, QCP Capital notes that the cryptocurrency has absorbed these headwinds without significant technical damage.
The inflow of investor capital into US spot Bitcoin ETFs continues to provide support for the market. These funds recorded $987 million in new investments last week, marking their third consecutive week of positive inflows.
On-chain indicators also suggest a constructive signal for Bitcoin, with CryptoQuant analyst Axel Adler Jr. noting that the 30-day change in realized capitalization turned positive on August 24 after 87 days in negative territory.