Bitcoin Slumps Below $79K as Fed Rate Hike Odds Climb to 60%
Bitcoin's price dropped to around $78,400 on Tuesday as the cryptocurrency market reacted to robust U.S. employment figures.
The jobs report revealed that American employers added 162,000 positions in August, exceeding economist projections by nearly threefold and keeping the unemployment rate at 4.1%.
This news elevated the market-implied likelihood of a 25-basis-point Federal Reserve rate increase at the September 16 policy meeting to approximately 60%, according to CME FedWatch data.
The increased probability of a rate hike is bearish for Bitcoin and risk assets, as higher interest rates tend to make these investments less attractive compared to yield-generating assets.
Brent crude oil prices also rose to around $97.50 per barrel, a six-week high, amid escalating U.S.-Iran geopolitical tensions and concerns over potential shipping disruptions through the Strait of Hormuz.