Bitcoin Falls Below $80K as Jobs Data Reshapes Fed Bets
Bitcoin fell below $80,000 after a stronger-than-expected US jobs report reduced expectations for a Federal Reserve rate cut and increased bets on tighter policy. US nonfarm payrolls rose by 162,000 in August, nearly three times the 56,000 forecast, while unemployment stayed at 4.1%. Revisions also added 55,000 jobs to June and July.
Bitcoin initially reached about $82,262 before falling from roughly $81,300 to $78,600. It later recovered to around $79,500. About $251 million in leveraged crypto positions were liquidated within four hours, including approximately $216 million in long positions. The decline followed a 25% Bitcoin gain in August, supported by $3.52 billion in net inflows into US spot Bitcoin ETFs.
Market pricing became more uncertain ahead of the Federal Open Market Committee meeting on September 15–16. Polymarket showed an even 50% probability of a rate pause and a 25-basis-point hike, reversing an earlier 60% expectation for no change. Higher Treasury yields and a stronger US dollar can pressure Bitcoin by making traditional yield-bearing assets more attractive.
US President Donald Trump again called for lower interest rates, but the Federal Reserve remains independent and focuses on employment and inflation. Upcoming producer and consumer price data may drive further Bitcoin volatility.
A separate development saw a Blake2b-based Bitcoin fork linked to BIP-110 begin trading on Neoxa. The project aims to create a new mining ecosystem with less dependence on dominant SHA-256 mining pools. Its token traded at about $350 against USDC, but thin liquidity and a spread of roughly 1.1% indicate elevated trading risk.
Bearish
The immediate impact on Bitcoin is bearish. The stronger US jobs report reduced expectations for Federal Reserve rate cuts and raised the possibility of a 25-basis-point hike. Higher interest-rate expectations have supported Treasury yields and the US dollar, increasing the opportunity cost of holding Bitcoin.
Bitcoin’s sharp intraday decline and the liquidation of about $216 million in long positions show that leveraged traders reacted quickly. The move below $80,000 could encourage further profit-taking, particularly after Bitcoin’s 25% August rally. Continued ETF inflows provide longer-term support, but they may not fully offset short-term macroeconomic pressure.
Trading conditions are likely to remain volatile ahead of US inflation and producer-price data and the September FOMC meeting. If economic data weakens, rate-cut expectations could return and support Bitcoin. However, persistent employment strength or further hawkish Federal Reserve signals could extend downside pressure. The BIP-110-linked fork is not likely to materially affect Bitcoin’s price because its market is small and liquidity is thin.