All eyes on Friday were on the US jobs report, which actually showed that the US economy had added 162,000 jobs in August, almost triple expectations of roughly 55,000-58,000. The unemployment rate remained at 4.1%, while July\u2019s initially reported loss of 23,000 jobs was revised to a gain of 21,000.<\/p>\n
The reaction in financial markets was instant. Bitcoin dropped<\/a> sharply below $79,000 after it was rejected at $82,400 earlier that day, and the US stock market joined the ride. In contrast, Treasury yields and the greenback jumped.<\/p>\n Although a strong labor market sounds positive at first glance for financial markets, there\u2019s more to the story as it comes to monetary policy. Such a favorable labor environment gives the Federal Reserve more room to keep fighting inflation without worrying that higher borrowing costs will trigger a sharp deterioration in employment. Perhaps that\u2019s why the rate hike odds immediately jumped<\/a> to over 50% after the jobs report went live.<\/p>\n Consequently, strong economic data can become negative news for risk assets when inflation remains high. The analysts at the Kobeissi Letter determined that \u201cthe system is broken,\u201d pointing to stocks falling despite the economy creating substantially more jobs than expected. Even US President Donald Trump was surprised<\/a> by the initial market reaction.<\/p>\n The system is broken.<\/p>\n You know the system is broken when stocks FALL after the US unexpectedly adds +162,000 jobs in a month, TRIPLING expectations.<\/p>\n Why? Because a strong jobs report means a higher chance of rate hikes.<\/p>\n This is the product 60-straight months of 2%+ inflation.\u2026 pic.twitter.com\/kP8y9kxBOj<\/a><\/p>\n \u2014 The Kobeissi Letter (@KobeissiLetter) September 4, 2026<\/a><\/p>\n\n Expectations for higher interest rates typically push Treasury yields and the dollar north, while tightening financial conditions and reducing investors\u2019 appetite for risk assets. That should explain BTC\u2019s immediate reaction and price drop<\/a> after the report went live.<\/p>\n Bitcoin analyst Adam Livingston outlined a different scenario beyond Friday\u2019s reaction, arguing<\/a> that persistent inflation, rising debt, and the monetary response ultimately required to sustain the financial system strengthen BTC\u2019s long-term value proposition.<\/p>\n In that framework, higher rates can pressure the cryptocurrency in the short term, but they don\u2019t solve the structural problems BTC was designed to hedge against.<\/p>\n The asset remains very sensitive to interest-rate expectations over shorter periods, but if inflation stays structurally elevated while governments continue running large deficits and debt burdens grow, the long-term argument for owning a scarce asset with a fixed supply could become much stronger.<\/p>\n The post Bitcoin\u2019s $3K Drop Comes as Fed Rate Hike Bets Surge, but Analyst Remains Bullish<\/a> appeared first on CryptoPotato<\/a>.<\/p>","protected":false},"excerpt":{"rendered":" All eyes on Friday were on the US jobs report, which actually showed that the US economy had added 162,000 jobs in August, almost triple expectations of roughly 55,000-58,000. The unemployment rate remained at 4.1%, while July\u2019s initially reported loss of 23,000 jobs was revised to a gain of 21,000. The reaction in financial markets […]<\/p>\n","protected":false},"author":0,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[],"class_list":["post-223089","post","type-post","status-publish","format-standard","hentry","category-discovery"],"_links":{"self":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts\/223089"}],"collection":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=223089"}],"version-history":[{"count":0,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts\/223089\/revisions"}],"wp:attachment":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=223089"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=223089"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=223089"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}Good News Is Hurting Markets?<\/h2>\n
Long-Term Bullish<\/h2>\n