Bitcoin Tumbles Below $77,000 as Fed Raises Interest Rates
Bitcoin's price retreated to around $76,501 after failing to break through the $77,000 barrier. This pullback was triggered by a stronger-than-expected US labor market report and a recent interest rate hike by the Federal Reserve.
The initial jobless claims for the week ending September 12 dropped to 196,000, marking the lowest figure since mid-July and falling short of economists' estimates of 208,000. This robust labor market data influenced the Federal Reserve's policy meeting, where officials decided to raise the target interest rate range by 25 basis points to 3.75%-4.00%.
The Federal Reserve's decision to tighten monetary policy is likely to impact the price action in Bitcoin. Rising interest rates tend to make government bond yields more attractive, increasing costs for leveraged trading and business operations in both traditional and digital asset markets.
Market data shows recent volatility, with Bitcoin reaching about $79,800 on September 11, dropping to $74,944 just days later, and then recovering into the mid-$76,000 range. The price remains below its 20-day simple moving average, situated near $78,104, with the four-hour relative strength index hovering below the neutral 50 level.