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Bitcoin falls below $77,000 as Fed hike odds rise

CME FedWatch puts the chance of a September rate increase at 66% after softer US labor data failed to ease rate expectations.

Reported · Written up by our desk · Market Structure

Bitcoin slid below $77,000, with the largest cryptocurrency trading around $76,985 as of press time, after weaker US labor data did not reduce expectations for another Federal Reserve rate increase, according to CryptoSlate.

The report cited July job openings that held at 7.3 million and hiring that remained subdued, while JOLTS turnover data landed in a market already focused on higher energy prices, rising Treasury yields, and a Fed shifting from rate cut discussions toward considering another hike.

Markets are also responding to macro and energy signals, with crude prices climbing as the Iran crisis continued to unsettle energy markets. West Texas Intermediate settled at $90.22, up 5.2%, and Brent closed at $94.65, up 4.6%, while Treasury yields rose, with the two-year up to 4.39% and the 10-year up to 4.79%.

CryptoSlate also pointed to an ISM manufacturing pullback in August, with the Prices Index holding at 71.1 and respondents citing fuel and oil-based products among items getting more expensive. CME FedWatch showed the probability of a September rate increase at 66%, up from about 60% after Fed Chair Kevin Warsh’s Aug. 28 Jackson Hole speech.

Latest closeWTI crude $90.70 ▲0.5%|Brent $95.32 ▲0.7%|Bitcoin $77,563.82 ▲0.2%

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