Bitcoin dropped 2.2% to $79,802.0 on Friday after a stronger-than-expected US jobs report boosted bets on a Federal Reserve rate hike this month. The pullback did not erase bitcoin's rally: the token remained on track for a third straight weekly gain, helped by upbeat comments on US crypto regulation from a top securities regulator.
Bitcoin shed 2.2% to $79,802.0 by 17:33 ET on Friday, as the stronger jobs data strengthened the dollar and weighed on risk assets including equities. Earlier in the week, the cryptocurrency had soared to $82,178.6, its highest level since mid-May. A lack of new military action between the US and Iran also offered markets some relief.
Crypto-linked stocks logged strong gains overnight, with top corporate bitcoin holder Strategy rallying nearly 18% in Thursday's session. Despite the Friday slide, bitcoin was still set to add 3% this week, its third straight week of gains.
August jobs data reignites rate-hike bets
The Bureau of Labor Statistics said nonfarm payrolls rose by 162,000 last month, more than triple the 55,000 economists had expected. The unemployment rate held steady at 4.1%, and payroll figures for June and July were revised up by a combined 55,000 jobs.
Stronger-than-expected data refueled bets that the Fed will raise interest rates at its September 16 meeting. Traders now see roughly a 58% chance of a quarter-point hike, according to CME Group's FedWatch tool, up from about 52% before the report.
Fed comments and falling yields fueled the Thursday-Friday rally
Bitcoin's Thursday and Friday rally was driven chiefly by a drop in US Treasury yields, after Federal Reserve Governor Christopher Waller said he is leaning toward keeping rates steady this month. He added that his view depends on whether upcoming inflation data shows a moderation in price pressures.
Regulatory tailwinds add to weekly gains
Bitcoin also drew support from comments by SEC Chair Paul Atkins. Atkins said he expects the Senate to vote on the Clarity Act on September 15, and called on policymakers to send it to President Donald Trump for approval by month-end.
Atkins also said the SEC was preparing its own crypto legislation that could function alongside the Clarity Act, which has stalled in Congress over disagreements on stablecoin yield payments and language restricting policymakers from trading in crypto markets.
Other major tokens mostly slipped Friday but were still headed for weekly gains: Ethereum fell 2.2% to $2,454.77 yet added 1% for the week, while XRP lost 4.4% despite a 1.4% weekly climb.
Source: Investing.com
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