Bitcoin Tumbles Below $80K 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 cryptocurrency fell to as low as $78,649, alongside stocks and bonds, following the release of August non-farm payrolls which increased 162,000, topping every estimate in a Bloomberg survey. The unemployment rate held steady at 4.1%.
Two-year Treasury yields climbed and the dollar strengthened in response to the jobs data, which has implications for interest rates and inflation expectations.
Fabian Dori, chief investment officer at Sygnum Bank, noted that a strong print validates current September hike probabilities but also highlighted other macroeconomic factors such as Treasury cash balances, bank balance-sheet capacity, private credit creation, and stablecoin supply that matter independently of short-term Fed decisions.