Bitcoin Plunges Below $81K as Jobs Report Triggers Rate Hike Bets

Bitcoin's price slipped below $81,000 after a stronger-than-expected jobs report pushed traders to reassess their expectations for U.S. interest rates.

The August payrolls figure came in at 162,000, nearly three times the median forecast of 55,000 from major Wall Street banks, sending the probability of a Federal Reserve rate hike up to around 60%.

Higher interest rates can make bonds more attractive while increasing borrowing costs and tightening financial conditions, potentially weighing on cryptocurrencies like Bitcoin.

The upcoming inflation data, including the Producer Price Index (PPI) on Thursday, September 10, and the Consumer Price Index (CPI) on Friday, September 11, will be closely watched to see if it reinforces expectations for tighter monetary policy or gives risk assets room to recover.

Despite the drop in price, institutional demand remains a potential buffer for Bitcoin, as U.S. spot Bitcoin ETFs recorded roughly $1 billion in net inflows last week.