Bitcoin Price Drops Amid Fed Hike Expectations and Oil Price Surge

Bitcoin's price slipped towards $78,000 on Tuesday as investors grew increasingly uncertain about its future. The cryptocurrency had reached a three-month high last week but began to pull back after stronger-than-expected US jobs data revived expectations for a Federal Reserve interest-rate hike this month.

The world's largest cryptocurrency was trading 1.1% lower at $78,577.5 by 09:06 ET (13:06 GMT) amid concerns that higher interest rates would pressure Bitcoin and other risk-sensitive assets. The US employment report showed employers added 162,000 jobs in August, triple economists' expectations.

As a result, the market-implied probability of a 25-basis-point Fed rate hike at the September 16 meeting jumped to around 60%, according to CME FedWatch. However, Treasury yields have risen, with the 10-year Treasury yield reaching around 4.8%.

Investors are now awaiting US producer prices on Thursday and consumer inflation data on Friday, which will be crucial in determining the Fed's decision. Meanwhile, oil prices continue to add pressure, with the price of Brent crude rising above $98 a barrel due to escalating tensions between the US and Iran.