Strong US Jobs Data Triggers Cryptocurrency Sell-Off Amid Interest Rate Hopes
The US non-farm payroll figures for August were released, showing an unexpected trend in the labor market. The data indicated that 162,000 new jobs were created, exceeding the expected 56,000 and surpassing the previous month's figure of 21,000. This strong employment data was met with a slight increase in the unemployment rate, remaining at 4.1% for the second consecutive month.
The figures had an immediate impact on the cryptocurrency market, causing Bitcoin to drop from $80,000 to $79,200. The largest altcoin, Ethereum, fell by 3% to $2,450, while XRP and Solana dropped by 3% and 2%, respectively. This decline is attributed to the anticipation of interest rate adjustments by the Federal Reserve in September.
The strong employment data may support a potential increase in interest rates to prevent overheating in the economy. According to the data, there's a 60.2% chance of an interest rate hike in September, compared to expectations of keeping rates unchanged.