Bitcoin Pares Gains on Strong US Jobs Data, Rate Hike Bets Soar

Bitcoin's price pared its gains on Friday after strong jobs data from the US boosted bets of a Federal Reserve interest rate hike.

The August nonfarm payrolls report showed an increase of 162,000 jobs, more than triple the expected 55,000, and reinforced signs of labor-market resilience despite elevated inflation.

This development is crucial for Bitcoin as its speculative nature makes it highly sensitive to shifts in yields. A brief spike in yields had previously cut short the crypto's late-August rally.

The jobs data also refueled bets that the Fed will raise interest rates at its September 16 meeting, with traders now seeing a roughly 58% chance of a quarter-point hike, up from about 52% before the report.