Bitcoin Drops Below $80K After Strong August Jobs Report
What happened: The U.
What happened: The U.S. economy added 162,000 nonfarm payrolls in August, far surpassing the consensus estimate of 56,000. The unemployment rate stood at 4.1%. In response, bitcoin dropped nearly 2% to below $80,000, with a sharp move to around $79,654 within five minutes after the report. Approximately $200 million in long crypto positions were liquidated within an hour. Odds of a September Fed rate hike jumped to 59% following the data, reversing the dovish sentiment that had driven ETF inflows the previous day.
Why it matters: The jobs report, while not always a major bitcoin mover, triggered a rapid repricing of interest rate expectations and a swift reversal in crypto market sentiment. The juxtaposition of record ETF inflows and a sharp price correction within 24 hours illustrates the fragility of risk-on positioning in the face of macroeconomic surprises. It also underscores the growing entanglement of crypto markets with traditional economic indicators and monetary policy.