Bitcoin Tumbles Amid Oil Price Surge, Hawkish Rate Hike Bets

Bitcoin's price has pulled back by nearly 1% today, trading at $78,524 as markets across the board feel the weight of rising oil prices. The S&P 500 closed at 7,689.80, down 0.37%, with the Dow Jones Industrial Average falling 614.88 points to 52,799.37.

The jobs report released on Friday showed U.S. employers added 162,000 positions in August, nearly triple the forecasted 53,000, pushing September rate-hike odds to around 57-59% on the CME FedWatch tool. This has traders leaning hawkish, meaning they believe the Federal Reserve is more inclined to raise interest rates than cut them.

Rising oil prices tend to feed into inflation, making it harder for the Federal Reserve to decide on interest rates. An interest rate hike would be bearish for markets, particularly risk assets like Bitcoin, as lending becomes more expensive and traders prefer safer assets over volatile ones.