Bitcoin Struggles Above $80,000 Amid Renewed Rate Hike Expectations
Bitcoin's price has been struggling to hold above $80,000 after a stronger-than-expected US employment report led to revived expectations of another Federal Reserve rate hike.
The economy added 162,000 jobs in August, almost three times the 56,000 economists had expected. This has increased the probability of a September Fed rate hike to 62%, which is bringing interest-rate risk back into focus for Bitcoin investors.
Despite spot exchange-traded funds providing a source of buying, with $731 million in net inflows on Sept. 3, the market is being pulled in opposite directions by ETF demand and expectations for US monetary policy.
The next major US inflation reading is due on Sept. 11, which will be particularly important after Friday's stronger labour figures. Inflation remains a key consideration for the Fed, despite the employment report showing continued progress.