Bitcoin Price Struggles as Strong Jobs Report Revives Rate Hike Expectations

Bitcoin's price struggle around $80,000 is largely attributed to the release of stronger-than-expected US employment data. The August jobs report showed a gain of 162,000 jobs, nearly three times the predicted number of 56,000. This has revived expectations of another Federal Reserve rate hike, which in turn has weighed on Bitcoin's price.

The move above $80,000 initially followed comments from Federal Reserve Governor Christopher Waller, who indicated he could support keeping interest rates unchanged at the September meeting if incoming inflation figures continued to improve. However, the stronger employment data has brought interest-rate risk back into focus for the market.

The unemployment rate held steady at 4.1%, while average hourly earnings rose 0.3% from July and 3.1% from a year earlier. The Federal Reserve's policy decision is set to be announced on September 16, with investors closely watching both the rate decision and Chair Kevin Warsh's comments on inflation and employment.

The next major US inflation reading is due on September 11, which will provide further insight into the Fed's potential actions. Meanwhile, the CLARITY Act procedural Senate vote is expected on September 15, which could also impact Bitcoin's price.