Bitcoin Tumbles Below $80,000 as Strong Jobs Report Shifts Fed Policy Expectations
Bitcoin's price dropped below $80,000 on September 4 after a stronger-than-expected August jobs report changed expectations about Federal Reserve policy. The report showed that nonfarm payrolls rose by 162,000 in August, more than five times the average monthly gain over the previous 12 months.
The unexpected strength of the labor market made it harder for the Fed to justify holding rates steady on labor-market weakness alone. This shift in expectations was reflected in the rising two-year Treasury yield and a firmer US dollar index.
According to Fed Governor Christopher Waller, the August inflation rate will heavily influence his September stance. He described the labor market as satisfactory and stable, with employment near its maximum sustainable level.