Bitcoin Struggles to Hold $80,000 as US Employment Data Revives Rate Hike Expectations

Bitcoin's price is struggling to hold above $80,000 after a recent surge that saw it briefly trade near $82,000. The reversal came following stronger-than-expected US employment data, which 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. This has led to a rise in the probability of a September Fed rate hike to 62%.

Despite this, demand from US spot Bitcoin exchange-traded funds (ETFs) continues to provide a source of buying pressure, with net inflows of $731 million on Sept. 3.

The next major US inflation reading is due on Sept. 11, which could have a significant impact on the market. Federal Reserve Governor Christopher Waller had tied his support for keeping interest rates steady to continued progress on inflation.