Jobs Report Strength Triggers Bitcoin Selloff as Rate Hike Odds Rise

The recent jobs report exceeded expectations, causing Bitcoin to drop below $80,000 on Friday.

According to Reuters, nonfarm payrolls surged by 162,000 in August, more than triple the 56,000 economists had forecast. The unemployment rate held steady at 4.1%, while July's previously reported drop of 23,000 jobs was revised upward to a gain of 21,000.

The strong jobs print led to an increase in Fed futures markets' predictions for a September rate hike, from 52% before the report to above 63.2% after it. This put pressure on Bitcoin and other risk assets, with rising Treasury yields contributing to the decline.

Peter Schiff warned that the payroll beat could be subject to downward revision, citing recent trends in revisions. He argued that investors betting on a rate hold based on this number may be positioning on faulty data.