Bitcoin Plunges Below $79,000 as Macro Factors Take Control

Bitcoin fell below $79,000 on September 8 after reaching its highest level in three months at around $82,164 last week.

The decline affected the entire market, with Ethereum trading near $2,480 and XRP around $1.39. Solana lost about 2% on the day.

However, this drop does not yet resemble a crash comparable to earlier this year, as total capitalization remains at $2,690 billion, down only 0.43%, and the Fear and Greed Index remains in the 'greed' zone at 72.

The market's decline is largely due to macroeconomic factors, including strong employment figures in the US, which brought the Federal Reserve back into focus. The Bureau of Labor Statistics announced a job creation of 162,000 in August, with an unchanged unemployment rate at 4.1%.

This has led to increased expectations for a 25 basis points hike in September, as contracts followed by CME FedWatch now give about a 58.4% probability of such a move.