Bitcoin Hovers Below $80,000 Ahead of US Inflation Data as Fed Rate-Hike Fears Build

Forecast Trend Report by Period

Bitcoin was trading below $80,000 as investors turned cautious ahead of key US inflation readings and weighed the possibility of another Federal Reserve interest-rate increase.

The Block reported on September 7 that Bitcoin changed hands at about $79,500. The cryptocurrency briefly rose above $82,000 last week, but lost momentum after stronger-than-expected US labor data. US nonfarm payrolls for August increased by 162,000, far exceeding the market forecast of 55,000, while the unemployment rate held at 4.1%.

The solid jobs report also raised the odds of further Fed tightening. According to CME FedWatch, the probability that the Fed will raise its benchmark rate by 25 basis points at its September 16 meeting climbed to about 60%. Rising US Treasury yields and a stronger dollar then added pressure to rate-sensitive assets, including Bitcoin.