Bitcoin Plunges Below $80K After Jobs Report Stuns Market

Bitcoin's price fell below $80,000 on Saturday after a stronger-than-expected August jobs report. The U.S. Bureau of Labor Statistics (BLS) reported that nonfarm payrolls rose 162,000 in August, tripling forecasts, and the unemployment rate stayed at 4.1%. This led to a 76% collapse in spot Bitcoin ETF inflows on Friday, from $730 million to $174.60 million.

According to Bitunix analysts, Bank of America flagged September 11 CPI as a more decisive signal for the Fed's rate path. If inflation remains sticky despite a softer labor market, higher rates could keep funding costs and pressure risk-asset valuations, including crypto.

On Substack, trader Garrett Jin noted that if Bitcoin's price rises, more people who bought at higher prices could use it as an opportunity to sell, creating additional selling pressure. This makes the market vulnerable to a short squeeze.