Bitcoin Tumbles Below $80,000 as Strong Jobs Data Boosts Rate Hike Bets

Bitcoin (BTC) dropped below $80,000 on Monday after strong U.S. jobs data boosted Fed rate hike bets to 60%. The unemployment rate held steady at 4.1% and markets now price a roughly 60% probability of a Fed rate hike at the September 15-16 meeting.

The drop comes after a strong U.S. jobs report on Friday, which ruffled risk assets across the board. Bitcoin had briefly climbed above $82,000 last week, touching a three-month high of $82,178 on Thursday before pulling back.

Higher interest rates tend to weigh on Bitcoin, raising the cost of holding non-yielding assets and tightening financial conditions more broadly. Oil prices are also playing a role, with Brent crude climbing to around $97 a barrel Monday as U.S.-Iran military tensions raised fears of supply disruptions.