Bitcoin falls below $80,000 as hot US payrolls revive Fed hike risk

Bitcoin fell below $80,000 on Friday after a much stronger-than-expected US jobs report abruptly raised rate-pressure concerns across crypto and other markets.

The Bureau of Labor Statistics said nonfarm payrolls increased by 162,000 in August, compared with a Reuters consensus of 56,000. The release arrived at 8:30 a.m. ET, and was followed immediately by a sharp cross-asset reaction. Unemployment held at 4.1%, while earlier payroll estimates were revised up by a combined 55,000.

Bitcoin lost about 2% and slipped below $80,000 in the immediate reaction. Within hours Bitcoin market data from CryptoSlate put BTC back near $79,570, still up 0.83% over 24 hours. Ethereum market data showed Ethereum near $2,454 and up 1.41% over the same window, suggesting the immediate selloff cut into earlier 24-hour gains rather than producing a full-day crypto collapse.

The market treated the payroll surprise as a reason the Federal Reserve could keep policy tighter. Reuters reported that the implied probability of a quarter-point September rate increase rose to 59% from 52% after the release.

The two-year Treasury yield, which is especially sensitive to Fed expectations, climbed 7.6 basis points. Ten-year and 30-year yields rose 3.2 basis points and 1 basis point, respectively, while the dollar index gained about 0.3% to 99.3.

That combination creates a familiar headwind for Bitcoin. Higher yields raise the return available on dollar assets, while a stronger dollar tightens financial conditions for assets priced in the currency. Gold faced the same pressure from a different angle: Reuters reported bullion down between 1.7% and 2.2% as higher rate expectations reduced the appeal of a non-yielding asset.

US stocks did not move in perfect unison. S&P 500 futures turned negative after the report and were down 0.22% at 8:33 a.m. ET, but Nasdaq 100 futures remained 0.07% higher. Average hourly earnings also rose a steady 0.3% for the month and 3.1% over the year. Those details show why the first reaction was not a one-way verdict across markets, even though the initial rate repricing was clear.

Oil was carrying its own catalyst. Brent was only slightly lower near $95 after the jobs report but remained more than 8% higher for the week amid renewed US-Iran hostilities and supply concerns. The payroll surprise offers the strongest explanation for the synchronized 13:30 BST jolt, but not for every move that followed.

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