Bitcoin Plunges Below $79,000 as Fed Rate Hike Odds Hit 60%

The price of Bitcoin has dropped below $79,000 as odds of a Fed rate hike hit 60%. The stronger-than-expected U.S. jobs report added pressure to the cryptocurrency market, with Bitcoin falling over 1% on Tuesday.

Zcash led losses among large caps, dropping nearly 5%, while Dogecoin and BNB held up best, each down only a fraction of a percent. Brent crude climbed to around $97.50 a barrel, a six-week high, due to U.S.-Iran tensions and concerns over shipping disruptions through the Strait of Hormuz.

U.S. spot Bitcoin ETFs recorded about $1 billion in inflows last week, extending a three-week positive streak. This buying has helped support prices during the pullback, but traders are now watching Thursday's producer price index and Friday's consumer price index for signs of inflation that could push Fed hike odds toward two-thirds.

The 10-year Treasury yield held near 4.8%, making yield-bearing investments more attractive and tightening financial conditions overall. Bitcoin has spent two weeks failing to close above $80,000 and is now holding a small weekly gain despite the dip.