Jobs Report Sparks Rate Hike Odds, Sends Bitcoin Price Tumbling
Bitcoin's price plummeted over 2% on September 4 after the release of a stronger-than-expected U.S. jobs report, which pushed the probability of a Federal Reserve rate hike at the upcoming September policy meeting to its highest level in weeks.
The report showed the U.S. economy added 162,000 nonfarm payrolls in August, nearly triple the 56,000 economists had forecast. The unemployment rate held at 4.1%, while average hourly earnings rose 0.3% from July and 3.1% year-over-year.
The jobs data fundamentally shifted the near-term rate calculus, with CME FedWatch odds of a 25-basis-point hike at the September 15-16 FOMC meeting jumping to 58% from 49.4% before the release.
However, institutional demand remains strong, with U.S. spot Bitcoin ETFs recording net inflows of $731 million on September 3, the largest single-day intake since January.