Bitcoin dropped $2,000 within minutes on Sept. 4 after US employers added far more jobs than expected in August, a print that raises the odds the Federal Reserve keeps borrowing costs high. The cryptocurrency slid from above $81,000 to $79,200, with several outlets also flagging a bigger intraday high and a jump in rate-hike odds tied to the report.
Bitcoin's climb above $81,000 stalled the moment the US jobs report crossed the wire on Sept. 4, and the cryptocurrency dropped $2,000 to $79,200 within minutes of the release.
The US economy added 162,000 jobs in August, significantly higher than the 55,000 to 58,000 jobs economists had expected, according to data from the Bureau of Labor Statistics. The August figure also topped TD Securities' forecast of 95,000 jobs. The unemployment rate held at 4.1%, while average hourly earnings rose 0.3% for the month and 3.1% over the past year.
A strong labor market gives the Fed more room to keep policy tight, which typically pushes Treasury yields and the dollar higher while reducing the relative appeal of risk assets like bitcoin. Still, the report does not guarantee a September hike, since inflation remains the central bank's biggest concern.
Bitcoin had earlier touched an intraday high above $82,000 before the sell-off dragged it under the $80,000 mark. Prediction markets now put the odds of a quarter-point hike at the Fed's Sept. 15-16 meeting at 53%, up from 51% a week earlier.
Investors are now turning to next week's CPI data and the Fed's policy decision later this month for further direction. Bitcoin remains above its lows from the previous week, but the report suggests it will likely stay volatile as markets adjust to the shifting rate outlook.
Sources: CryptoPotato, CoinGape, Crypto Briefing (snippet-based)
Trading involves risk.
Risk Disclaimer
