Bitcoin Price Plunges as Strong Jobs Report Boosts Rate Hike Expectations
The Bitcoin price experienced a significant drop to below $79,300 after a stronger-than-expected US jobs report boosted expectations for a Federal Reserve rate hike. The rally that had pushed BTC to its four-month high of $82,240 earlier in the session lost momentum due to the latest employment figures.
The US economy added 162,000 jobs in August, far exceeding economists' predictions of around 56,000. This stronger labor-market data reinforced the hawkish Fed policy outlook signaled by Federal Reserve Chair Kevin Warsh's speech at the Jackson Hole symposium a week earlier.
As a result, markets reacted quickly to the report, with traders increasing expectations for a September rate hike. The stronger employment figures reduced expectations for near-term Fed easing and pushed Treasury yields higher, contributing to Bitcoin's decline.