Bitcoin Slips Back Below $80,000 After Strong U.S. Jobs Report Reshapes Fed Rate Bets

CoinDesk reports that bitcoin fell back under $80,000 on Friday after the U.S. August employment report came in far stronger than expected, prompting investors to scale back expectations for near-term monetary easing. Gold and U.S. equities also weakened following the data. Figures from the U.S. Bureau of Labor Statistics showed nonfarm payrolls rose by 162,000 in August, well above the 53,000 consensus estimate. The unemployment rate held at 4.1%, matching expectations, and June and July employment data were revised higher. Rate markets repriced quickly. CME FedWatch data showed the probability traders assign to a Federal Reserve rate hike at the September 15–16 meeting increased to 58%, up from 49.4% the day before. U.S. Treasury yields moved higher across the curve, with the 2-year yield hitting its highest level since January 2025. Bitcoin had climbed to $82,240 ahead of the release, marking a four-month high. Gains were supported in part by comments a day earlier from Fed Governor Christopher Waller favoring keeping rates unchanged. The stronger jobs numbers undercut that view: within minutes of the release, bitcoin dropped more than 2%, briefly trading near $79,300. Higher interest rates typically boost demand for risk-free assets and support the U.S. dollar, dynamics that often weigh on dollar-denominated risk assets and gold. Despite the pullback, broader crypto sentiment remained upbeat. CoinMarketCap's Fear & Greed Index stood at 75, still in "greed" territory but down from last week's "extreme greed." Spot bitcoin ETFs recorded a net inflow of $730.8 million on the day, extending a run of buying that had been supported by earlier expectations of a pause in rate hikes. The Altcoin Season Index was 38, signaling that market preference continues to lean toward bitcoin over the wider altcoin complex. In U.S. markets, major equity benchmarks were mixed: the Dow Jones Industrial Average fell 0.4%, the S&P 500 slipped 0.2%, and the Nasdaq edged up 0.1%. Gold briefly dropped to $4,380 per ounce during the session. Attention now shifts to the Fed's September 15–16 policy meeting and the next U.S. jobs report, scheduled for October 2.