Jobs Data Revives Fed Hike Bets, Bitcoin ETF Inflows Provide Support
Bitcoin's price held below $80,000 on Saturday as jobs data fueled expectations of a Federal Reserve interest rate hike. The cryptocurrency rose 0.43% to $79,767.6 after reaching a three-month high above $82,000 on Thursday.
The U.S. Labor Department reported stronger-than-expected nonfarm payrolls increased by 162,000 in August, beating economists' forecast of 56,000. The data also showed the unemployment rate held at 4.1%, while annual wage growth slowed to 3.1%.
As a result, rate futures briefly priced in around a 65% probability of a hike before easing to roughly 57%-59%. This increased pressure on risk-sensitive assets like Bitcoin.
Despite the macro headwinds, institutional demand remains strong, with U.S. spot Bitcoin ETFs attracting $174.6 million of net inflows on September 4. BlackRock's account for about $117.4 million of these inflows, while Fidelity's attracted around $57.2 million.