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Bitcoin slips below $80,000 after strong U.S. jobs report
The drop came as traders assigned about a 50% to 60% chance of a September 15-16 Federal Reserve rate hike, after the August labor report beat expectations.
Bitcoin fell below $80,000 on Friday after a better-than-expected U.S. labor report suggested the job market accelerated in August, prompting renewed expectations for tighter monetary policy. In New York trading, the leading cryptocurrency was recently near $79,764 after dipping as low as $78,706 earlier in the morning, and it was down more than 1% over 24 hours. It had risen above $82,000 the previous day.
Bitcoin’s move reflected a common link to interest rate expectations, as the Federal Reserve is generally more likely to raise rates when the labor market is strong because higher employment can support spending and potentially lift inflation. Federal Reserve Chair Kevin Warsh, in a speech last week as head of the U.S. central bank, said he has “more work to do” to fight inflation, according to Bitcoin Magazine.
Market pricing also pointed toward the Fed’s next policy meeting on September 15 to 16, with traders viewing a rate hike as roughly a 50% to 60% probability. The story also noted President Donald Trump urged the Federal Reserve to slash rates, writing on Truth Social that lower rates are warranted given the U.S. is a “much stronger credit.”
The article said bitcoin has recently decoupled from stocks as investors returned to concerns about dollar debasement, and it referenced prior momentum tied to U.S. debt repurchases. It also mentioned that the coin has traded in line with gold, and that U.S. public debt exceeded $40 trillion for the first time last month, factors that were cited as keeping the so-called debasement trade in focus.
Latest closeGold $4,431.70 ▲1.9%|Bitcoin $79,153.04 ▼1.5%