Bitcoin Tumbles Below $80,000 on Strong US Jobs Data

Bitcoin's push above $80,000 was short-lived as stronger-than-expected US jobs data revived bets on a September Federal Reserve rate hike. The cryptocurrency fell to as low as $78,649 after non-farm payrolls increased 162,000 in August, topping every estimate in a Bloomberg survey.

The unemployment rate held steady at 4.1%, causing two-year Treasury yields to climb and the dollar to strengthen. This led to a sharp drop in Bitcoin's price alongside stocks and bonds.

Fabian Dori, chief investment officer at Sygnum Bank, noted that 'a clear rebound doesn't settle the debate, it arms the hawks.' He emphasized the importance of factors like Treasury cash balances, bank balance-sheet capacity, private credit creation, and stablecoin supply, which are independent of short-term Fed decisions.

Crypto-related companies also saw their shares decline. Coinbase Global dropped around 4%, while Bitcoin accumulator Strategy and stablecoin issuer Circle Internet Group each slipped about 1%.