1 week ago
Bitcoin falls below $80,000 after strong US jobs report
Bitcoin had recently climbed above $80,000, but then its price dropped.
The drop happened after new US jobs numbers showed the economy was stronger than expected.
Employers added 162,000 jobs in August.
The unemployment rate stayed at 4.1%.
Some investors now think the Federal Reserve may raise interest rates in September.
Higher interest rates can make riskier investments like Bitcoin less attractive.
The US dollar and government bond yields also went up.
Crypto companies including Coinbase, Strategy, and Circle saw their shares fall too.
Some analysts said the jobs report supports higher-rate expectations, while other economic factors could still influence markets.
Bitcoin fell as much as 3.5% to $78,649 after stronger-than-expected US jobs data.
US nonfarm payrolls increased by 162,000 in August, exceeding every Bloomberg survey estimate.
The unemployment rate remained at 4.1%, while Treasury yields and the dollar rose.
The data revived expectations of a September Federal Reserve rate hike.
Coinbase Global, Strategy, and Circle shares also declined as crypto-related assets weakened.
- Who
- Bitcoin investors, the Federal Reserve, and crypto-related companies were affected.
- What
- Bitcoin dropped below $80,000 after stronger-than-expected US employment data revived rate-hike expectations.
- Where
- The market reaction occurred in US financial and cryptocurrency markets.
- When
- The decline followed the August jobs report, after Bitcoin had reclaimed $80,000 on Thursday.
- Why
- The strong jobs data increased expectations that the Federal Reserve could raise interest rates in September.
Rate-Hike View
Rate-Hold View
Interpretation of the jobs report
Rate-Hike View
The stronger-than-expected payroll increase and steady unemployment rate support expectations of a September Federal Reserve rate hike.
Rate-Hold View
The jobs report does not settle the policy debate; falling inflation could still support holding rates steady.
What drives Bitcoin next
Rate-Hike View
Higher Treasury yields and a stronger dollar can pressure Bitcoin and other risk assets.
Rate-Hold View
Treasury cash balances, bank balance-sheet capacity, private credit creation, and stablecoin supply may influence Bitcoin independently of short-term Federal Reserve decisions.
Key facts
- Bitcoin low
- $78,649
- Maximum decline
- 3.5%
- August payroll growth
- 162,000 jobs
- Unemployment rate
- 4.1%
- Policy expectation
- Stronger September Federal Reserve rate-hike bets
- Coinbase decline
- About 4%
- Strategy and Circle declines
- About 2% each
Quotes
Fabian Dori
Chief investment officer at Sygnum Bank
“A strong print validates current September hike probabilities. But Treasury cash balances, bank balance-sheet capacity, private credit creation and stablecoin supply matter independently of short-term Fed decisions.”
CNBC TV 18
“A clear rebound doesn’t settle the debate; it arms the hawks,” said Fabian Dori, chief investment officer at Sygnum Bank.”
CNBC TV 18
Sources
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