Bitcoin Plunges Below $80K Amid Strong Jobs Data and Rate Hike Fears

Bitcoin's price dropped below $80,000 on Saturday after hitting a high of roughly $82,300 earlier in the week. The decline came as unexpectedly strong US employment data sparked concerns about tighter monetary policy from the Federal Reserve.

The August jobs report showed a surge in nonfarm payrolls by 162,000, far exceeding economists' expectations of 56,000. This has led to increased market expectations for a quarter-point Fed rate hike this month, rising to 59% from 52% before the release.

Higher interest rates can put pressure on Bitcoin and other risk assets by increasing returns available on bonds and tightening financial conditions.

However, institutional demand remains strong. US spot Bitcoin ETFs attracted $730.8 million of net inflows on September 3, with BlackRock's accounting for about $454 million of that amount.