Bitcoin Tumbles Below $80K as Jobs Data Raises Rate Hike Odds

Bitcoin's price has dipped below $80,000 as strong US jobs data raised the chances of another interest rate hike by the Federal Reserve. According to a recent report from Bitfinex Alpha, the US added 162,000 jobs in August, with unemployment staying at 4.1%. This labor market strength gives the Fed less reason to cut rates.

The strong jobs report pushed two-year US Treasury yields above 4.34%, making safer assets like government bonds more attractive and potentially putting pressure on Bitcoin. However, despite this, Bitcoin held its ground for a while before trading between $77,200 and $82,100.

The cryptocurrency remains about 42% above its July low, and US spot Bitcoin ETFs have continued to attract demand, recording nearly $1 billion in net inflows last week. Analysts at Bitfinex are watching this week's inflation report as an important test for Bitcoin, and will be monitoring whether ETF demand can remain strong even while short-term interest rates stay high.