Bitcoin Drops Below $80K After Strong Jobs Data, ETF Inflows Collapse 76% In A Day

Bitcoin (BTC) fell below $80,000 on Saturday, down more than 1% after a stronger-than-expected U.S. jobs report for August rattled the cryptocurrency market.

On Friday, Nonfarm payrolls increased by 162,000 in August, more than triple the 53,000 economists had expected, according to the U.S. Bureau of Labor Statistics (BLS). Private payrolls were also much stronger than expected, with 127,000 jobs added compared with expectations of around 43,000 to 45,000. The unemployment rate remained at 4.1%. The BLS also revised up payrolls for June and July by a combined 55,000 jobs.

Jobs Report May Not Set Fed Path

According to a Bitunix analyst, Bank of America (BofA) said before Friday’s report that the jobs data alone may not be enough to significantly move current rate-hike pricing unless payroll growth is substantially below forecasts.

But the bank pointed to the September 11 Consumer Price Index (CPI) report as a more definitive signal for the Fed's rate path, arguing that if inflation remained sticky even as the labor market became softer, higher rates could keep funding costs and pressure risk-asset valuations, including crypto.

Analysts also said that the yen carry trade offered a separate channel for transmitting Japanese monetary policy shocks to the crypto markets, beyond U.S. data.