August Jobs Report Crushes Bitcoin Hopes
New York, The August jobs report sent shockwaves through financial markets, particularly in cryptocurrency. Fed Governor Christopher Waller's conditional support for holding rates steady at the September meeting was seen as a bullish sign for Bitcoin, with prices climbing to $82,240 before plummeting over 2% to $78,649 when the payrolls figure was released.
The economy added 162,000 jobs last month, exceeding the Reuters consensus of 56,000. This unexpected growth has rekindled speculation about a rate hike in September, with CME FedWatch odds jumping from 54% to 59%. Bitcoin fell by over $4,000 as a result, trading at $76,656 on Saturday morning.
Spot Bitcoin ETFs saw a record-breaking $3.52 billion in net inflows last month, while total net assets reached $99.6 billion. However, the surge in institutional buying and strong demand for crypto ETFs may have been premature, as the Fed's decision to hike rates now seems more likely.
The Federal Reserve's upcoming policy meeting on September 15-16 will be a crucial event for cryptocurrency markets. A rate increase would strengthen the dollar, potentially putting pressure on holders outside the US and compressing returns in rupee terms for Indian investors.