Bitcoin Resilient Near $80K as Fed Hike Bets Rise
Bitcoin remained steady near $80,000 on Monday after retreating from levels above $82,000 reached last week. Despite stronger-than-expected US employment data and rising Treasury yields, Bitcoin has shown 'exceptional resilience' according to LMAX Group Market Strategist Joel Kruger.
The cryptocurrency's price was around $79,105 on Monday. The recent jobs report showed that employers added 162,000 jobs, well above expectations of 55,000. This increased expectations for a Federal Reserve rate hike at its September 16 meeting, with CME's FedWatch tool showing an implied probability of around 60%.
However, investor demand for Bitcoin remains firm, with US spot Bitcoin ETFs recording $987 million in inflows last week, extending their positive streak to three consecutive weeks. Onchain indicators have also provided a constructive signal, with CryptoQuant analyst Axel Adler Jr. noting that Bitcoin's 30-day change in realized capitalization turned positive on August 24.
Looking ahead, the market will focus on US producer price data due Thursday and August consumer price inflation data scheduled for Friday. These figures will provide key signals ahead of the Fed's September 16 policy meeting, with some analysts predicting a softer core reading could support the case for keeping rates unchanged.