Bitcoin Slips Back Below $80,000 as Strong US Jobs Data Fuels September Fed Rate-Hike Bets

Forecast Trend Report by Period

Bitcoin fell back below $80,000 after U.S. employment data for August came in well above market expectations. The stronger-than-expected report renewed expectations of a Federal Reserve rate increase in September, adding selling pressure across risk assets.

According to Bloomberg on September 4, Bitcoin dropped as much as 2.8% to $79,197 after the U.S. jobs report was released. U.S. stocks and bond prices also fell, while the two-year Treasury yield rose and the dollar strengthened.

U.S. nonfarm payrolls increased by 162,000 in August, topping all estimates compiled by Bloomberg. The unemployment rate held at 4.1%, unchanged from the previous month. With labor-market strength exceeding expectations, markets are again pricing in a higher probability of a rate increase at the Federal Open Market Committee's September 16 meeting.