Bitcoin Resists Rate Fears at $79,000

Crypto markets took a breather on Tuesday as Bitcoin held steady around $79,000. The strong performance comes despite stronger-than-expected US employment data and rising expectations of higher interest rates.

The August US employment report showed payrolls rising by 162,000, substantially ahead of expectations. This has increased uncertainty around the Federal Reserve's September meeting and raised expectations for another rate increase.

Higher rates typically weigh on speculative assets like cryptocurrencies by increasing returns available from government bonds and tightening financial conditions.

However, Bitcoin has shown relative resilience around $79,000, with US spot exchange-traded funds attracting around $770 million across the first four trading sessions of September. This could provide a potential source of support as macroeconomic conditions become less favourable.