Bitcoin falls below US$80,000 as hot jobs data spurs Fed

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(Sept 4): Bitcoin dropped nearly 3% after stronger-than-expected US jobs data revived bets on a September Federal Reserve rate hike, abruptly reversing the cryptocurrency’s latest push above US$80,000 (RM323,341).

The token fell as much as 2.8% to US$79,197, alongside stocks and bonds after non-farm payrolls increased 162,000 in August, topping every estimate in a Bloombergsurvey, while the unemployment rate held at 4.1%. Two-year treasury yields climbed and the dollar strengthened.

The reversal gives Bitcoin’s repeated struggle around US$80,000 a fresh macro test. The cryptocurrency had reclaimed the level on Thursday as falling yields and a weaker dollar buoyed risk assets after Fed governor Christopher Waller signalled support for holding rates steady if inflation continued to ease.

“A clear rebound doesn’t settle the debate, it arms the hawks,” said Fabian Dori, chief investment officer at Sygnum Bank. “A strong print validates current September hike probabilities. But treasury cash balances, bank balance-sheet capacity, private credit creation and stablecoin supply matter independently of short-term Fed decisions.”

Source: theedgemalaysia.com