Bitcoin Slumps Below $80,000 Amid Hawkish Fed Bets and Strong Jobs Data
Bitcoin fell to around $79,300 on September 4 after the August U.S. jobs report showed 162,000 new positions, nearly triple expectations, pushing the probability of a September Federal Reserve rate hike to 58% from 49.4%. The selloff erased a brief push above $81,000 despite record spot ETF inflows of $731 million on September 3.
The strong jobs data gave the Fed room to keep policy restrictive, which drained the marginal dollar liquidity that flows into high-beta assets like Bitcoin. Governor Christopher Waller has said he would consider a hike if inflation runs hot, making the August CPI print on September 11 the decisive variable ahead of the September 15-16 FOMC meeting.
Bitcoin's daily chart shows the price hovering near $79,000 after reaching an intraday high above $81,400. The cryptocurrency retains gains made during its August breakout from the $63,000-$65,000 zone, but major simple moving averages remain well below the current price.