Bitcoin Slumps Below $80,000 Amid Strong US Jobs Report

Bitcoin's price dropped below $80,000 on Friday after a strong US jobs report was released. The labor market accelerated in August, exceeding expectations and sparking concerns that the Federal Reserve may raise interest rates.

The Federal Reserve is typically more likely to hike interest rates when the job market is strong, as it can lead to increased spending and inflation. However, with Bitcoin often performing well in low-interest rate environments, its price drop was unexpected.

Traders currently view a US Federal Reserve interest rate hike at the upcoming September 15-16 policy meeting as roughly a 50% to 60% probability. Meanwhile, former President Donald Trump called for lower interest rates on his social media platform Truth Social, stating 'Lower the interest rates because the U.S.A. is a much stronger credit than it was just a short time ago!'

Bitcoin has decoupled from stocks recently due to concerns around dollar debasement, and its price surge last month was attributed to the US Treasury Department's decision to more than double the size of its government debt repurchases.