Bitcoin Slumps Below $80,000 on Strong US Jobs Data
Bitcoin's recent push above $80,000 has been abruptly reversed after stronger-than-expected US jobs data revived bets on a September Federal Reserve rate hike.
The non-farm payrolls increased by 162,000 in August, surpassing every estimate in a Bloomberg survey, while the unemployment rate held at 4.1 per cent.
This led to a strengthening dollar and rising two-year Treasury yields, causing Bitcoin to fall as much as 3.5 per cent to $78,649.
Shares of crypto-related companies also declined, with Coinbase Global dropping around 4 per cent and Circle Internet Group slipping around 1 per cent.
Fabian Dori, chief investment officer at Sygnum Bank, commented that the strong jobs data 'validates current September hike probabilities', but noted that other factors such as Treasury cash balances and stablecoin supply also matter independently of short-term Fed decisions.