Macro Inflation Risks Weigh on Crypto Market as BTC Struggles Above $80,000

The global market is experiencing a high-volatility environment due to rising inflation risks and retreating easing expectations. The recent U.S. non-farm payroll report added 162,000 jobs in August, with the unemployment rate holding steady at 4.1% and average hourly earnings increasing by 3.1%. This has led to increased expectations for a rate hike in September, supporting U.S. Treasury yields and the dollar.

The crypto market has been volatile, with BTC closing at approximately $78,570 on August 31 and surging to a high of around $82,180 on September 3 before retreating to stabilize around $79,500-$80,000 over the weekend. ETH experienced even greater volatility during the same period.

The market's focus will shift to the U.S. August PPI, CPI, and the European Central Bank's interest rate decision from September 7-13. If CPI comes in below expectations and core inflation continues to decline, easing rate hike expectations could allow BTC to break above $80,000.