US Payrolls Data Sends Crypto Prices Tumbling

Crypto prices declined on September 4 as strong US payrolls data increased expectations of a Federal Reserve interest rate hike. The jobs report showed 162,000 new positions were created in August, with unemployment holding steady at 4.1%. This has put pressure on Bitcoin and other cryptocurrencies, which are sensitive to changes in monetary policy.

The Phemex Crypto Market Daily noted that the US payrolls data had a significant impact on crypto markets. Bitcoin (BTC) fell by 1.66% to $79,643, while Ethereum (ETH) dropped by 1.92% to $2,451.56. Some altcoins performed better than others, with DeFi tokens seeing increased activity due to the deployment of major stablecoin USDC.

The strong payrolls data is likely to lead to a rate hike in September, which would be the first since before the pandemic. This has already had an impact on global financial markets, with the euro and yen rising against the dollar as investors seek safe-haven assets.