Bitcoin Slips Under $80,000 After Blowout US Jobs Report Lifts Rate-Hike Bets

Bitcoin fell through the $80,000 threshold after a much stronger-than-expected US jobs report pushed markets to price in higher odds of a Federal Reserve rate increase. The US economy added 162,000 jobs in August, about three times economists' forecasts. Wall Street had been looking for roughly 53,000 to 56,000. The print marked the strongest monthly gain since March and signaled the labor market remains resilient. Risk assets sold off as expectations for tighter policy firmed. Bitcoin dropped nearly 23% to as low as $79,197. The Dow Jones Industrial Average fell about 226 points. Revisions reinforced the report's strength. July's initial estimate of a 23,000 job decline was revised to a 21,000 job increase. Upward revisions to prior months added another 55,000 jobs. The unemployment rate was unchanged at 4.1%, and labor force participation edged up to 61.6%. Wages continued to rise, with average hourly earnings up 0.3% month over month and 3.1% year over year. Rate expectations jumped. CME's FedWatch tool showed the probability of a 25-basis-point hike at the Sept. 15'16 meeting climbing to about 58% to 60%, up sharply from pre-release levels. Investors will now turn to upcoming Consumer Price Index and Producer Price Index data. Inflation readings will be key to whether the Fed proceeds with a September hike: strong inflation alongside robust employment would strengthen the case, while softer inflation could support holding rates steady despite labor market momentum.