Bitcoin Struggles Near $80,000 as Rate Hike Expectations Rise

Bitcoin's price struggle around $80,000 has been ongoing due to conflicting market forces. The cryptocurrency had risen roughly 1% over the past 24 hours to trade near $79,000 on September 4 but failed to hold above the level after stronger US employment data revived expectations of another Federal Reserve rate hike.

The August US payrolls report showed the economy added 162,000 jobs, almost three times the 56,000 economists had expected. The unemployment rate held at 4.1%, while average hourly earnings rose 0.3% from July and 3.1% from a year earlier.

Bitcoin's reversal followed comments from Federal Reserve Governor Christopher Waller, who indicated he could support keeping interest rates unchanged at the September meeting if incoming inflation figures continued to improve. Expectations for the Fed to leave rates unchanged rose following his remarks, helping Bitcoin and other risk assets recover.