Bitcoin Takes a Hit as Fed Hike Odds Rise Above 60%
Bitcoin's price has cooled below $80,000 as rising odds of another interest rate hike by the Federal Reserve weighed on the cryptocurrency.
The US jobs data for August revealed a gain of 162,000 jobs, with unemployment holding steady at 4.1%, suggesting a strong labor market that could deter the Fed from cutting rates just yet.
As a result, markets have increased their expectations of a Federal Reserve rate hike on September 16 to around 60%.
The stronger US economy has pushed two-year US Treasury yields above 4.34%, making safer assets like government bonds more attractive and potentially putting pressure on Bitcoin's price.
Despite the upward pressure, Bitcoin had held up relatively well until recently, trading between $77,200 and $82,100.
The cryptocurrency remains about 42% above its July low, with US spot Bitcoin ETFs continuing to attract strong demand, recording nearly $1 billion in net inflows last week.