Bitcoin Slides as Blowout Jobs Report Revives Fed Hike Odds
U.S. payrolls rose 162,000 in August, far above the 53,000 expected, while unemployment stayed at 4.1% and prior months were revised higher. The stronger report pushed markets to price a higher chance of a Fed rate hike at the Sept. 15-16 meeting, lifting Treasury yields and pressuring stocks, gold, and crypto. The Dow fell 0.4%, the S&P 500 slipped 0.2%, and Bitcoin dropped more than 2% to about $79,300 after briefly hitting a four-month high earlier in the day. Fed funds futures now imply a 58% chance of a hike, up from 49.4%. Crypto sentiment cooled but remained positive, with Bitcoin ETF inflows continuing and overall market cap holding near $2.67 trillion. The jobs beat weakened the case for the Fed to hold rates steady and reinforced the usual link between higher rates, a stronger dollar, and lower prices for Bitcoin and gold.
