Bitcoin Slips Below $77K Amid Hawkish Fed Expectations

Bitcoin's price fell below $77,000 as the US labor market data failed to dislodge expectations for another Federal Reserve rate increase. The largest cryptocurrency traded around $76,985 as of press time after July job openings held at 7.3 million and hiring remained subdued.

The release landed into a market already confronting $90 oil, rising Treasury yields, and a Fed that has shifted sharply from discussing rate cuts to considering another hike. Data from CME FedWatch showed the probability of a September rate increase at 66%, up from about 60% following Fed Chair Kevin Warsh's Aug. 28 Jackson Hole speech.

James E. Thorne, chief market strategist at Wellington Altus, argued that raising rates in response to an externally driven energy shock could compound the economic damage. Higher crude prices raise transport and production costs, reduce household purchasing power, and squeeze corporate margins.