Why is Bitcoin price struggling around $80,000?

Bitcoin $BTC has risen roughly 1% over the past 24 hours to trade near $79,000 on Sept. 4, but has surrendered an earlier move above $81,000 after stronger US employment data revived expectations of another Federal Reserve rate hike.

Bitcoin's reversal followed the August US payrolls report, which showed the economy added 162,000 jobs, almost three times the 56,000 economists had expected.

The unemployment rate held at 4.1%, while average hourly earnings rose 0.3% from July and 3.1% from a year earlier. July payrolls were revised from a 23,000 decline to a 21,000 increase.

$BTC had climbed from below $78,000 on Sept. 3 and briefly traded near $82,000 on Friday before dropping back below $80,000.

The reversal has left Bitcoin once again struggling to hold above $80,000, while its seven-day performance remains roughly flat.

The move above $80,000 initially followed comments from Federal Reserve Governor Christopher Waller, who indicated he could support keeping interest rates unchanged at the September meeting if incoming inflation figures continued to improve.

Expectations for the Fed to leave rates unchanged rose following his remarks, helping Bitcoin and other risk assets recover.

Demand from US spot Bitcoin exchange-traded funds provided a separate source of buying.