US Jobs Data Hikes Rate Hike Odds, Pressuring Bitcoin
Bitcoin's price has been affected by recent strong US jobs data, which has increased the chances of another interest rate hike from the Federal Reserve. According to a report from Bitfinex Alpha, the US added 162,000 jobs in August, with unemployment staying at 4.1%. This strong labor market is giving the Fed less reason to cut rates.
The jobs data pushed two-year US Treasury yields above 4.34%, making safer assets like government bonds more attractive and potentially putting pressure on Bitcoin. However, despite this pressure, Bitcoin has held up, reaching $82,400 on September 3 before pulling back to its current price range of roughly $77,200 to $82,100.
Analysts at Bitfinex are watching the upcoming inflation report as a key test for Bitcoin's recovery. They believe that if ETF demand continues under high short-term interest rates, it could support Bitcoin's price. Currently, US spot Bitcoin ETFs have seen nearly $1 billion in net inflows last week.
Bitcoin also faces a potential selling hurdle, with more than 71% of its supply currently in profit, approaching the historical average of 74.7%. This is a level that Bitcoin has previously moved above during shifts from weaker markets to stronger ones.