Jobs Report Sinks Bitcoin's Hopes for $80,000 as Rate Hike Odds Rise
The recent jobs report exceeded expectations, adding 162,000 jobs in August. This was three times the estimated number and follows a Federal Reserve governor's comments supporting holding interest rates steady. However, the strong labor market takes away from the argument for a pause on rate hikes.
Bitcoin had climbed to $82,240 after Governor Christopher Waller's statement but fell 2% to below $80,000 when the jobs report was released. The jobs number and rising Treasury yields pulled money towards assets that pay interest, making Bitcoin less competitive.
The odds of a rate hike on September 16 had increased from near 67% before Waller's comments to close to 50%. A jobs number this strong could push those odds back up, potentially leading to a decline in the Bitcoin price.