Bitcoin Tumbles Below $80,000 as Jobs Data Reignites Hike Bets

Bitcoin took a hit on September 7 after US jobs data revealed a stronger-than-expected increase in nonfarm payrolls, sparking bets of a September Federal Reserve rate hike. The cryptocurrency fell to as low as $78,649, down around 3.5% from its previous day's close.

The surge in employment numbers topped every estimate in a Bloomberg survey and saw the unemployment rate hold steady at 4.1%. As a result, two-year Treasury yields rose, while the dollar strengthened.

Bitcoin had briefly reclaimed the $80,000 level on Thursday following signals from Fed Governor Christopher Waller that rates might remain steady if inflation continued to ease. However, this latest jobs data has thrown doubt back into the market.

According to Fabian Dori, chief investment officer at Sygnum Bank, 'A clear rebound doesn't settle the debate; it arms the hawks.' He pointed out that while strong employment numbers validate current September hike probabilities, other macroeconomic factors such as Treasury cash balances and private credit creation remain crucial.