Bitcoin drops below $80,000 after US jobs report triples expectations, boosting September rate hike odds
Bitcoin surged over 5% to $82,000 after Fed Governor Christopher Waller signaled openness to holding rates steady, but reversed sharply below $80,000 following a stronger-than-expected August jobs report. The US added 162,000 jobs—nearly triple the 53,000 forecast—while unemployment held at 4.1%. Fed funds futures traders increased the probability of a September rate hike to 58%, causing risk assets like gold and stocks to fall as short-term yields and the dollar rose.
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US Adds 162,000 Jobs, Triple Expectations, Putting Bitcoin, ETH and XRP on Rate Hike Watch
The US economy added 162,000 jobs in August 2026, roughly triple economists' expectations of 53,000, while unemployment held steady at 4.1%. The strong labor data reversed July's initially reported loss of 23,000 jobs. Markets interpreted the surprise as a reason for the Federal Reserve to maintain restrictive monetary policy, with the implied probability of a September rate hike jumping to around 60% according to CME FedWatch data. The report puts Bitcoin, Ether, and XRP on rate hike watch, as higher rates typically strengthen the dollar and reduce demand for risk assets. Bitcoin recently fell toward $77,000 amid rising rate-hike expectations. President Donald Trump responded by renewing calls for lower interest rates, arguing the US is a stronger credit. However, economists noted the strong labor market gives the Fed more room to focus on controlling inflation.
Bitcoin drops nearly 3% after strong US jobs data revives rate hike bets
Bitcoin experienced a sharp decline of nearly 3% following the release of stronger-than-expected US jobs data. The positive employment figures revived market expectations that the Federal Reserve may implement a rate hike in September. This development abruptly reversed Bitcoin's recent upward momentum, which had briefly pushed the cryptocurrency's price above $80,000. The price drop highlights the sensitivity of digital assets to macroeconomic indicators and monetary policy signals, as traders adjust positions based on changing expectations for interest rates. The jobs data, which exceeded analyst forecasts, suggested a resilient labor market that could give the Fed room to continue tightening monetary policy to combat inflation. This news triggered a sell-off in risk assets, including cryptocurrencies, as higher interest rates typically reduce the appeal of speculative investments like Bitcoin.
Bitcoin Slides as Strong Jobs Report Revives Federal Reserve Rate Hike Odds
On September 4, 2026, Bitcoin dropped over 2% to near $79,300 after a stronger-than-expected U.S. jobs report revived expectations of a Federal Reserve interest rate hike. The Bureau of Labor Statistics reported 162,000 jobs added in August, nearly triple the forecast of 53,000, while the unemployment rate held steady at 4.1%. Fed funds futures traders increased the probability of a rate hike at the September 15-16 meeting to 58%, up from 49.4% the previous day. The Dow Jones fell 0.4%, the S&P 500 slid 0.2%, and Treasury yields rose. President Donald Trump commented on the jobs number, renewing calls for rate cuts. Gold also fell to $4,380 an ounce. Bitcoin had earlier reached a four-month high of $82,240 following Fed Governor Christopher Waller's signal of holding rates steady, but reversed after the payrolls data. The article notes that higher rates make risk-free assets more attractive and strengthen the dollar, weighing on Bitcoin and gold. Crypto sentiment remained bullish with the Fear and Greed Index at 75, and spot Bitcoin ETFs saw $730.8 million in net inflows.
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Bitcoin's $80,000 breakout fails after blowout US jobs report boosts rate hike odds
Bitcoin nearly broke through its key $83,000 resistance level on Thursday, surging over 5% to reach $82,000 after Federal Reserve Governor Christopher Waller signaled openness to holding interest rates steady if inflation continues to cool. The rally reversed sharply on Friday following a much stronger-than-expected August jobs report, which showed employers added 162,000 jobs—nearly triple expectations—while prior months were revised upward. The unemployment rate held at 4.1%. The strong labor data strengthened the case for a September rate hike by the Fed, causing Bitcoin to fall back below $80,000. Other risk assets that had rallied on Thursday, including gold, Strategy (MSTR), Robinhood (HOOD), Coinbase (COIN), Palantir (PLTR), and the ARK Innovation ETF (ARKK), also reversed course as shorter-term yields and the dollar rose. The article notes this pattern mirrors the August 19 'debasement trade' triggered by Treasury Secretary Scott Bessent's announcement of increased Treasury buybacks, which had similarly boosted Bitcoin and gold while weakening the dollar.
Bitcoin's $80,000 breakout fails after blowout US jobs report boosts rate hike odds
Bitcoin nearly broke through its $83,000 resistance level on Friday, reaching as high as $82,000, before reversing sharply below $80,000 following a stronger-than-expected US jobs report. The August nonfarm payrolls report showed 162,000 jobs added, nearly triple expectations, with upward revisions to prior months. The unemployment rate held at 4.1%. The strong labor data strengthened the case for a September Federal Reserve rate hike, causing short-term yields and the dollar to rise while risk assets like Bitcoin, gold, and high-beta stocks fell. This reversal came just one day after Fed Governor Christopher Waller signaled openness to holding rates steady if inflation continues to cool, which had sparked a rally in Bitcoin and other risk assets. The article highlights the ongoing tension between labor market strength and inflation dynamics in shaping Fed policy and crypto market movements.