Bitcoin Stays Below $80,000 After Jobs Data Revives Rate Hike Bets

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Bitcoin was trading near $79,800 on Saturday, September 6, according to Investing.com, after pulling back from a three-month high above $82,000 reached Thursday.

The retreat followed stronger-than-expected U.S. jobs data that raised fresh expectations for a Federal Reserve interest rate increase at its September 15-16 meeting.

The U.S. Labor Department reported that nonfarm payrolls grew by 162,000 in August, well above the 56,000 gain economists surveyed by Reuters had projected. The unemployment rate held steady at 4.1%, while annual wage growth eased slightly to 3.1%.

Jobs Report Shifts Rate Hike Odds

Rate futures briefly priced in about a 65% chance of a September hike before settling in the 57%-59% range, up from roughly 52% before the payrolls release, Investing.com reported.

Treasury yields and the dollar moved higher alongside that shift, weighing on Bitcoin and other risk-sensitive assets.

Bloomberg reported that Bitcoin fell as much as 3.5% on the day, touching a low of $78,649, alongside declines in stocks and bonds.

Fed Governor's Earlier Comments Had Lifted Bitcoin

The jobs-driven selloff reversed part of a rally sparked by remarks from Federal Reserve Governor Christopher Waller. Waller indicated, according to Investing.com, that he could back leaving rates unchanged in September if August inflation data continued to improve.