Strong Jobs Data Weighs on Bitcoin Price as Fed Hike Bets Rise

Bitcoin's price held below $80,000 on Saturday after retreating from its highest level in over three months. The cryptocurrency rose 0.43% to $79,767.6, but failed to hold above $82,000.

The reversal came as stronger-than-expected US employment data revived expectations for a Federal Reserve interest rate hike. Nonfarm payrolls increased by 162,000 in August, well above the 56,000 gain economists had expected.

Rate futures briefly priced in around a 65% probability of a hike before easing to roughly 57%-59%, compared with about 52% before the jobs report.

In contrast, institutional demand continued to provide support for Bitcoin. US spot Bitcoin ETFs attracted $174.6 million of net inflows on September 4, extending their inflow streak to three sessions and taking cumulative inflows over the period to about $1.01 billion.