Jobs Report Sparks Rate-Hike Fears, Sends Bitcoin Below $80,000
The August US jobs report surprised markets with a gain of 162,000, exceeding the consensus estimate of 56,000. This led to a sharp reaction across assets, as investors reassessed the likelihood of a Federal Reserve rate hike in September.
The Bureau of Labor Statistics reported that nonfarm payrolls increased by 162,000 in August, with unemployment holding steady at 4.1%. The release was followed by a rise in Treasury yields and a stronger dollar, which put pressure on assets priced in the currency, including Bitcoin and gold.
BTC fell below $80,000 in the immediate reaction to the jobs report, but later recovered to near $79,570, up 0.83% over 24 hours. Ethereum remained higher over the same period, with a price of $2,454 and an increase of 1.41%.
The market's response was driven by concerns that the strong jobs report could lead to tighter monetary policy, making dollar-denominated assets more attractive and reducing demand for non-yielding assets like gold and Bitcoin.