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

Bitcoin's recent surge above $80,000 was short-lived as stronger-than-expected US jobs data sparked bets on a September Federal Reserve rate hike. The cryptocurrency fell to a low of $78,649, following a 3.5% drop.

The jump in nonfarm payrolls to 162,000 in August, beating all estimates, and the unchanged unemployment rate at 4.1%, sent yields climbing and the dollar strengthening.

According to Fabian Dori, chief investment officer at Sygnum Bank, 'A clear rebound doesn’t settle the debate; it arms the hawks.' He emphasized that while a strong print validates current September hike probabilities, other factors such as Treasury cash balances, bank balance-sheet capacity, private credit creation, and stablecoin supply matter independently of short-term Fed decisions.

Crypto-related companies also took a hit, with Coinbase Global Inc. dropping around 4%, and Bitcoin accumulator Strategy Inc. and stablecoin issuer Circle Internet Group Inc. each slipping by about 2%.