Bitcoin Falls Below $80K as Fed Hike Risks Increase

Bitcoin fell below $80,000 after stronger-than-expected US jobs data increased expectations of another Federal Reserve rate hike. US employers added 162,000 jobs in August, while unemployment held at 4.1%. Markets now price about a 60% chance of a rate increase at the September 16 meeting. The data pushed the two-year US Treasury yield above 4.34% and strengthened the dollar, creating pressure on Bitcoin and other risk assets. Bitcoin recently reached $82,400 but has since traded between roughly $77,200 and $82,100. A break above $82,100–$82,500 could support a move towards $90,000, while a loss of $78,000 may trigger leveraged-long liquidations and expose support near $77,000, $75,700 and $71,800. Liquidation clusters around $78,000, $80,000 and $81,800–$82,300 could increase short-term volatility. Bitcoin ETF demand remains a key source of support, with nearly $1 billion in net inflows last week. More than 71% of Bitcoin’s supply is in profit, approaching the historical 74.7% level associated with market transitions. The next major catalyst is the US consumer price index report. Hotter inflation could raise rate-hike risks and weigh on Bitcoin, while softer inflation and continued ETF buying could help Bitcoin retest resistance.