Bitcoin Tumbles Below $80,000 as Strong Jobs Report Fuels Rate Hike Expectations

Bitcoin's price plummeted below $80,000 after the release of the US August jobs report, which showed a significant increase in new nonfarm payrolls. The data, released on September 3, recorded 162,000 new jobs, well above the consensus estimate of 56,000.

The strong labor market data intensified debate among Federal Reserve policymakers about potential interest rate changes. Federal Reserve Governor Christopher Waller stated that he would likely favor keeping rates unchanged if inflation continues to improve, but a strong August inflation reading could justify raising rates.

Institutional investment in Bitcoin continued despite the price drop, with Bitcoin exchange-traded funds (ETFs) posting $730 million in daily inflows. However, rising Treasury yields and risk aversion may still impact markets like Bitcoin, highlighting the delicate balance between institutional interest and broader macroeconomic pressures.