Bitcoin Tumbles Below $80,000 as Jobs Data Reignites Rate Hike Fears
Bitcoin plummeted as much as 3.5% after a surprise increase in US jobs data renewed bets on an interest rate hike by the Federal Reserve, effectively knocking the cryptocurrency off its recent high above $80,000.
The token fell to as low as $78,649, mirroring the decline of stocks and bonds following the release of August nonfarm payrolls data. The report showed a 162,000 increase in jobs, surpassing every estimate in a Bloomberg survey, while the unemployment rate remained steady at 4.1%.
Federal Reserve Governor Christopher Waller's previous comments supporting low interest rates had previously buoyed risk assets and pushed Bitcoin above $80,000 on September 3. However, this reversal has put the cryptocurrency to the test once again as investors await the Fed's next move.
'A clear rebound doesn't settle the debate, it arms the hawks,' said Fabian Dori, chief investment officer at Sygnum Bank. 'A strong print validates current September hike probabilities.'