Bitcoin Plunges Toward $78k Amid Fed Rate Hike Bets and Oil Price Surge

Bitcoin's price slipped towards $78,000 on Tuesday as market participants continued to grapple with concerns over inflation and interest rates.

The world's largest cryptocurrency fell 1.6% lower at $78,406.5 by 02:28 ET (06:28 GMT) after a stronger-than-expected US jobs report revived expectations for a Federal Reserve interest-rate hike this month.

The August employment data showed that US employers added 162,000 jobs, almost triple economists' expectations, while the unemployment rate held at 4.1%.

This has pushed the market-implied probability of a 25-basis-point Fed rate hike at the September 16 meeting to around 60%, according to CME FedWatch.