Bitcoin Slips Below $79K Amid Fed Rate Hike Fears

Bitcoin's price dropped to $78,915 on Friday, September 4th, after a 2.98% decline from its previous value of $81,340 in just over two hours.

The sudden dip came following the release of stronger-than-expected US jobs data, which made a Federal Reserve rate cut less likely and a rate hike more feasible.

This development may impact crypto price trends, particularly for Bitcoin, as the Fed's decision later in September is expected to have significant effects on the market.

According to Santiment, Bitcoin was approaching a long-term supply zone of around $82k, which it last visited in May and resulted in a strong sell-off. The 6-month holder MVRV metric stood at 13.10%, indicating that holders were profitable, but the 180-day mean coin age has been trending lower since May, signaling distribution among medium-term holders.

The high profitability among medium-term holders, combined with a possible decline in buying power due to an increasing stablecoin ratio on Binance, could affect Bitcoin's recent upward momentum.