Bitcoin Slides Below $79K as Strong US Jobs Report Lifts Fed Rate Hike Odds Above 50%
Bitcoin dropped below $79,000 after a stronger-than-expected US August jobs report drove Fed rate hike bets above 50%, according to CryptoPotato.
Why it matters
The report illustrates how strong economic data can weigh on risk assets when it increases expectations of monetary tightening. CryptoPotato reported that an analyst maintained a bullish outlook on Bitcoin despite the downturn.
Key facts
The US economy added 162,000 jobs in August, almost triple the expected 55,000–58,000.
162,000 jobsReported by CryptoPotato
The US unemployment rate remained at 4.1% in August.
4.1 %Reported by CryptoPotato
July's initially reported loss of 23,000 jobs was revised to a gain of 21,000.
21,000 jobsReported by CryptoPotato
Fed rate hike odds jumped to over 50% after the jobs report.
50 %Reported by CryptoPotato
US Treasury yields and the dollar rose following the jobs report.
Reported by CryptoPotato
US stocks declined following the jobs report.
Reported by CryptoPotato
What happened
Bitcoin fell sharply below $79,000 on Friday after being rejected at $82,400 earlier in the day, according to CryptoPotato. The decline coincided with the release of the US August jobs report, which showed 162,000 jobs added — nearly triple the expected 55,000–58,000. The unemployment rate held at 4.1%, and July's initially reported loss of 23,000 jobs was revised to a gain of 21,000. CryptoPotato reported that rate hike odds surged above 50% following the report, as a stronger labor market gives the Federal Reserve more flexibility to continue tightening monetary policy. US equities also declined, while Treasury yields and the dollar rose. The Kobeissi Letter, cited by CryptoPotato, commented that "the system is broken," noting stocks were falling despite strong job creation. CryptoPotato also reported that US President Donald Trump expressed surprise at the initial market reaction. CryptoPotato characterized an unnamed analyst as remaining bullish despite the sell-off.
How the story developed
- First report
First report by CryptoPotato
Bitcoin’s $3K Drop Comes as Fed Rate Hike Bets Surge, but Analyst Remains Bullish
- Update
US August jobs report released
162,000 jobs added, nearly triple expectations; unemployment at 4.1%; July revised from -23,000 to +21,000.
- Update
Bitcoin rejected at $82,400 and drops below $79,000
Immediate reaction to the jobs report and surging rate hike odds.
Affected entities
Original sources
| Publisher | Report | Role | Published |
|---|---|---|---|
| CryptoPotato Crypto media | Bitcoin’s $3K Drop Comes as Fed Rate Hike Bets Surge, but Analyst Remains Bullish | Original |
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