Disclaimer: Information found on CryptoreNews is those of writers quoted. It does not represent the opinions of CryptoreNews on whether to sell, buy or hold any investments. You are advised to conduct your own research before making any investment decisions. Use provided information at your own risk.
CryptoreNews covers fintech, blockchain and Bitcoin bringing you the latest crypto news and analyses on the future of money.
Bitcoin fell below $80,000 on Friday after a significantly stronger-than-expected US jobs report abruptly raised rate-pressure concerns across crypto and other financial markets.
The Bureau of Labor Statistics reported that nonfarm payrolls increased by 162,000 in August, surpassing the Reuters consensus estimate of 56,000. The data was released at 8:30 a.m. ET, triggering an immediate sharp reaction across asset classes. The unemployment rate remained steady at 4.1%, while earlier payroll estimates were revised upward by a combined 55,000.
Bitcoin dropped approximately 2% and slipped below the $80,000 mark in the immediate aftermath. Within hours, CryptoSlate data showed BTC trading near $79,570, still up 0.83% over a 24-hour period. Ethereum data indicated ETH trading near $2,454, up 1.41% over the same window, suggesting that the initial selloff merely eroded earlier 24-hour gains rather than causing a full-day collapse in crypto markets.
Related Reading
Bitcoin Cannot Break Out Past $80,000 Until It Devours an 880k BTC Roadblock That Choked Every Rally
Why Strong Jobs Data Hit Bitcoin and Gold
Markets interpreted the payroll surprise as an indication that the Federal Reserve might maintain tighter monetary policy. Reuters reported that the implied probability of a quarter-point rate increase in September rose to 59% from 52% following the release.
The two-year Treasury yield, which is particularly sensitive to Fed expectations, climbed 7.6 basis points. The ten-year and 30-year yields rose by 3.2 basis points and 1 basis point, respectively, while the dollar index gained approximately 0.3% to 99.3.
Related Posts
Related Reading
Bitcoin Hits $77,000 Wall as the Fed Gets Trapped Between Weak Jobs and $90 Oil
This combination creates a familiar headwind for Bitcoin. Higher yields increase the return available on dollar-denominated assets, while a stronger dollar tightens financial conditions for assets priced in the currency. Gold faced similar pressure from a different angle: Reuters reported that bullion prices fell between 1.7% and 2.2% as higher rate expectations reduced the appeal of a non-yielding asset.
US stocks did not move in perfect unison. S&P 500 futures turned negative after the report and were down 0.22% at 8:33 a.m. ET, but Nasdaq 100 futures remained 0.07% higher. Average hourly earnings also rose a steady 0.3% for the month and 3.1% over the year. These details illustrate why the initial reaction was not a one-way verdict across all markets, even though the initial repricing of rate expectations was clear.
Related Reading
Bitcoin’s Failed $81,000 Breakout Just Put $75,000 Back on the Table
Oil was carrying its own catalyst. Brent crude was only slightly lower near $90 after the jobs report but remained more than 8% higher for the week amid renewed US-Iran hostilities and supply concerns. The payroll surprise offers the strongest explanation for the synchronized 13:30 BST jolt, but not for every move that followed.
The post Bitcoin Drops Below $80,000 as Strong US Jobs Data Revives Fed Rate Hike Concerns appeared first on CryptoSlate.
