Bitcoin Plunges Below $80K as Strong US Jobs Report Triggers Rate Hike Fears
The price of Bitcoin dropped sharply on Friday after a stronger-than-expected US jobs report was released, causing investors to reassess their expectations for Federal Reserve policy. The nonfarm payrolls report showed that the US economy created 162,000 jobs in August, exceeding the median forecast from Wall Street banks of 55,000.
The report also revealed upward revisions of 55,000 jobs for June and July, further supporting a robust labor market. However, this news had a negative impact on Bitcoin's price, which had earlier reached an intraday high of $82,262.21 but quickly lost ground to drop below the critical $80,000 mark.
The sell-off was triggered by the expectation that the Fed will keep borrowing costs higher due to a strong labor market, making riskier assets such as cryptocurrencies less attractive. As a result, prediction markets now price in a 53% chance of a 25-basis point rate hike at the September FOMC meeting.
Bitcoin's price is currently trading at $76,795, down from its earlier high but still up by 1.64%. The market will likely remain volatile as investors wait for the next set of US CPI and PPI inflation data and the Fed's policy decision later this month.