Bitcoin Price Drops Below $79K Amid Rate Hike Bets
The US jobs report released on Friday showed that the economy added 162,000 jobs in August, more than triple the expected 55,000-58,000. This led to a sharp drop in Bitcoin's price below $79,000 after it was rejected at $82,400 earlier that day. The US stock market also fell alongside crypto.
The strong labor market gives the Federal Reserve more room to fight inflation without worrying about higher borrowing costs triggering a sharp employment decline. This led to an immediate jump in rate hike odds to over 50%.
Bitcoin analyst Adam Livingston remains bullish on BTC, arguing that persistent inflation, rising debt, and the monetary response required to sustain the financial system strengthen its long-term value proposition. He believes that while higher rates may pressure Bitcoin in the short term, they don't solve the structural problems it was designed to hedge against.