Bitcoin Price Plunges $2,000 After Blowout Jobs Report
The recent surge of Bitcoin to over $81,000 was short-lived as it faced an immediate sell-off following the release of the US jobs report. The strong labor market data added 162,000 jobs in August, more than triple the expected number of 55,000-58,000 new jobs.
This unexpected boost gives the Federal Reserve more room to keep monetary policy tight, which could spell trouble for risk-on assets like Bitcoin. According to the Bureau of Labor Statistics, the unemployment rate remained unchanged at 4.1% and average hourly earnings increased 0.3% monthly and 3.1% annually.
The strong labor market data weakens one argument for keeping rates unchanged: that the US labor market needs protection from tighter monetary policy. Higher interest-rate expectations typically push Treasury yields and the greenback north while reducing the relative appeal of risk assets.