Bitcoin Tumbles Below $80K After Stronger-Than-Expected Jobs Report

Bitcoin's price plummeted below $80,000 after a stronger-than-expected U.S. jobs report for August was released. The report showed nonfarm payrolls rose by 162,000 in August, tripling economists' forecasts of around 53,000.

The unemployment rate remained at 4.1%, and the Bureau of Labor Statistics (BLS) revised up payrolls for June and July by a combined 55,000 jobs.

Bank of America analysts said that the September 11 Consumer Price Index (CPI) report will be a more decisive signal for the Fed's rate path than the jobs data alone. According to them, if inflation remains sticky even as the labor market becomes softer, higher rates could keep funding costs and pressure risk-asset valuations.

Spot Bitcoin ETF inflows dropped 76% to $174.60 million on Friday from $730 million on Thursday, just before the jobs report was announced. This has put Bitcoin at a crucial level, with investors watching to see whether ETF inflows continue to rise or fall further.