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Bitcoin dipped below $80,000 as strong US jobs data raises the chances of another interest rate hike. Markets now put the odds of a Federal Reserve rate hike on September 16 at about 60%.<\/p>\n
According to the recent Bitfinex Alpha report, the US added<\/a> 162,000 jobs in August, while unemployment stayed at 4.1%. The data suggests the labor market remains strong, giving the Fed less reason to rush into cutting rates.<\/p>\n The strong jobs report pushed two-year US Treasury yields above 4.34% as markets adjusted their expectations for the Fed. Higher rates can put pressure on Bitcoin because safer assets such as government bonds become more attractive.<\/p>\n Even so, Bitcoin held up<\/a> for a while despite pressure. So far, it reached $82,400 on September 3 before pulling back and has since traded between roughly $77,200 and $82,100.<\/p>\n Meanwhile, the cryptocurrency remains about 42% above its July low. US spot Bitcoin ETFs have also continued to attract demand, recording<\/a> nearly $1 billion in net inflows last week.<\/p>\n Analysts at Bitfinex said this week’s inflation report will be an important test for Bitcoin. They are watching whether ETF demand can remain strong even while short-term interest rates stay high.<\/p>\n If ETF buying continues under those conditions, Bitfinex believes high rates may no longer be the main factor limiting Bitcoin’s recovery. A sustained flow of money into the ETFs could support<\/a> Bitcoin if other market conditions remain favorable.<\/p>\n Bitcoin also faces a potential selling hurdle as more than 71% of its supply is currently in profit. That figure is approaching the historical average of 74.7%, a level Bitcoin has previously moved above during shifts from weaker markets to stronger ones.<\/p>\n For now, Bitcoin remains between $77,200 and $82,100 as markets wait for fresh inflation data. A weekly close above $82,100 could strengthen the recovery, while hotter inflation could increase pressure on the Fed to raise rates.<\/p>\n The post Bitcoin Calms Below $80K as Fed Hike Odds Climb: Bitfinex Alpha<\/a> appeared first on CryptoPotato<\/a>.<\/p>\n\nStrong Jobs Data Puts Bitcoin to the Test<\/h2>\n
ETF Demand and Inflation Could Set the Next Move<\/h2>\n
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