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\u2019s 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\u2019s 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>","protected":false},"excerpt":{"rendered":" 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%. According to the recent Bitfinex Alpha report, the US added 162,000 jobs in August, while unemployment stayed at 4.1%. The data […]<\/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-224839","post","type-post","status-publish","format-standard","hentry","category-discovery"],"_links":{"self":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts\/224839"}],"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=224839"}],"version-history":[{"count":0,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts\/224839\/revisions"}],"wp:attachment":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=224839"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=224839"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=224839"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}Strong Jobs Data Puts Bitcoin to the Test<\/h2>\n
ETF Demand and Inflation Could Set the Next Move<\/h2>\n