Fed Rate Hike Fears Weigh on Bitcoin Amid Strong US Job Data

Bitcoin declined in value as investors reacted to new US economic data and growing concerns over the Federal Reserve's policy. The BTC price dropped by 0.69% to $64,384.27 at press time, weighed down by traders' expectations of potential Fed rate hikes.

The recent employment data showed that initial jobless claims came in lower than predicted, with seasonally adjusted initial claims hitting 199,000 for the week ending August 1. This indicates ongoing labor market tightness and adds to the pressure on the Fed to cut rates.

With a robust jobs market, policymakers have more room to keep monetary policy restrictive. The market is now waiting for the September Fed meeting, with traders betting on a 54.71% chance of a 25-basis-point rate hike.