Bitcoin Tumbles Below $80,000 as Hot Jobs Data Spur Fed-Hike Bets

Bitcoin's latest push above $80,000 was short-lived as it dropped nearly 3% after stronger-than-expected US jobs data revived bets on a September Federal Reserve rate hike.

The token fell to as low as $79,197, alongside stocks and bonds, following the release of non-farm payrolls which increased by 162,000 in August, exceeding every estimate in a Bloomberg survey.

The unemployment rate remained at 4.1%, while two-year treasury yields climbed and the dollar strengthened.

Fabian Dori, chief investment officer at Sygnum Bank, noted that the strong jobs data 'validates current September hike probabilities', but emphasized that other factors such as treasury cash balances, bank balance-sheet capacity, private credit creation, and stablecoin supply matter independently of short-term Fed decisions.