Bitcoin Slumps Below $80k Amid Fed Hike Bets and Oil Surge
Bitcoin's price has dropped below $80,000 due to increased expectations of a Federal Reserve interest rate hike and higher oil prices. The US jobs data released on Friday showed that employers added 162,000 jobs in August, nearly triple the expected number, which pushed markets to price a roughly 60% probability of a Fed rate increase at the September 15-16 meeting.
The stronger-than-expected jobs report and higher oil prices have weighed on risk appetite, causing Bitcoin's price to fall. Oil prices have climbed to around $97 a barrel as military tensions between the US and Iran raise concerns over supply disruptions in the Middle East.
Investors are now looking for further clues on the Fed's policy path, with producer prices due on Thursday and consumer prices on Friday. A hotter inflation reading could reinforce expectations for tighter monetary policy.