Bitcoin Resilience Tested Near $80K Amid Rate Hike Expectations

Bitcoin has maintained its resilience near $80,000 despite stronger-than-expected US employment data and rising Treasury yields. The cryptocurrency remains supported by continued inflows into spot Bitcoin ETFs.

The August US jobs report showed employers added 162,000 jobs, well above expectations of 55,000, while the unemployment rate remained unchanged at 4.1%. This stronger labor market data increased expectations that the Federal Reserve could raise interest rates at its Sept. 16 meeting, with an implied probability of around 60% for a 25-basis-point hike.

However, higher Treasury yields and a stronger US dollar weighed on Bitcoin and other rate-sensitive assets following the report. Despite this, investor demand for Bitcoin has remained firm, with US spot Bitcoin ETFs recording $987 million in inflows last week, extending their positive streak to three consecutive weeks.

CryptoQuant analyst Axel Adler Jr. noted that Bitcoin's 30-day change in realized capitalization turned positive on Aug. 24 after 87 days in negative territory. The increase suggests Bitcoin is changing hands at higher prices and supports the recovery as the cryptocurrency holds near $80,000.