Bitcoin Stumbles as Fed Rate Hike Expectations Rebound Amid Soaring Oil Prices
The US Federal Reserve's decision on interest rates has caused Bitcoin to struggle with a price of around $76,985. The latest jobs data from the Bureau of Labor Statistics showed that July job openings held at 7.3 million and hiring remained subdued.
The report failed to dislodge expectations for another Federal Reserve rate increase, which is now at 66% according to CME FedWatch. This is up from about 60% following Fed Chair Kevin Warsh's Jackson Hole speech.
The inflation-driven repricing has been reinforced by higher energy prices and Treasury yields. The ISM manufacturing index eased to 54.6 in August, while new orders fell to 53.7 and employment declined to 51.2.
Crude oil surged 5.2% to settle at $90.22, putting pressure on the Fed's decision. Higher Treasury yields increase the return available on dollar assets, making it harder for Bitcoin to attract investors.