Bitcoin Slips Below $77,000 as Fed Hike Expectations Rise

Bitcoin's recent surge above $81,000 was short-lived as it slipped back below $77,000 amidst concerns over a potential Federal Reserve rate hike. The largest cryptocurrency has been trading in a narrow range despite the market's expectation of another increase in interest rates.

The latest data from CryptoSlate shows that Bitcoin traded around $76,985 as of press time after July job openings held at 7.3 million and hiring remained subdued. This comes on the heels of the Federal Reserve's shift from discussing rate cuts to considering another hike, with a probability of 66% for a September rate increase according to CME FedWatch.

Despite softer labor turnover in July, the report failed to overturn an inflation-driven repricing already reinforced by higher energy prices and Treasury yields. The combination of these factors has led to a harder backdrop for Bitcoin investors, particularly with higher Treasury yields increasing the return available on dollar assets and raising the hurdle for holding assets without contractual yield.