Bitcoin Price Hovers at $81,000 as Market Awaits US NFP Report
Bitcoin's price has been hovering around $81,000 on Friday, up over 4% from the start of the week. This increase is largely due to strong institutional demand, with spot Bitcoin Exchange Traded Funds (ETFs) on track for a third straight week of inflows, totaling $812.26 million through Thursday.
Market participants are eagerly awaiting the release of the US Nonfarm Payrolls (NFP) report, which could provide fresh clues on the Federal Reserve's policy path and dictate Bitcoin's next directional move. A higher-than-expected reading could reinforce expectations for a September Fed rate hike, potentially pushing Treasury yields and the USD higher and weighing on Bitcoin's price.
Meanwhile, Middle East tensions are keeping inflation concerns elevated, with energy prices remaining high due to ongoing US-Iran conflict in the Strait of Hormuz. This has raised concerns about renewed inflationary pressures and could continue to support the USD while dampening risk appetite and capping risky assets like Bitcoin.