Bitcoin Tumbles Below $80,000 as Strong Jobs Report Shifts Fed Policy Expectations

Bitcoin's push above $80,000 lost an important policy cushion on September 4 when the August jobs report came in far stronger than recent hiring trends.

The result made it harder for the Federal Reserve to justify holding rates steady due to labor-market weakness alone.

BLS reported nonfarm payrolls rose by 162,000 in August, more than five times the average monthly gain of 31,000 over the previous 12 months.

With a stronger labor market giving policymakers more room to focus on inflation, higher short-term yields and a firmer dollar tightened the financial backdrop for a dollar-priced risk asset like Bitcoin.