Bitcoin Tumbles Below $79,000 as US Employment Data and Oil Prices Boost Inflation Fears

Bitcoin's price fell below $79,000 on Tuesday as strong US employment data revived expectations of tighter Federal Reserve policy. The cryptocurrency was trading at $78,339.

Experts say the recent pullback has not yet been accompanied by a broader retreat in institutional demand. U.S. spot Bitcoin ETFs attracted nearly $987 million last week, while Ether ETFs added roughly $218 million.

Nischal Shetty, founder of WazirX, said oil prices have moved above $92 and could keep inflation and Fed expectations elevated. With oil rising and US equities under modest pressure, the next move in crypto may depend less on today's modest equity weakness and more on whether rising energy prices translate into tighter liquidity expectations.

Avinash Shekhar, Co-Founder & CEO of Pi42, said for the broader market, the important signal will be how Bitcoin behaves after a pullback rather than how quickly it reaches the next target. A market that can absorb short-term pressure, hold key support levels and then recover without excessive leverage would provide a stronger foundation for the next leg of the rally.

The global crypto market capitalisation edged down 0.99% to $2.67 trillion, according to CoinMarketCap. The crypto fear and greed index is at 71, suggesting the market sentiment is greedy.