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FinanceBitcoin reverses below $80K after blowout US jobs report boosts rate hike odds
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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.
Source report
By Jared Blikre Fri, September 4, 2026 at 1:19 PM PDT · 4 min read
- BTC-USD +0.54%
- DX-Y.NYB -0.02%
Bitcoin nearly crossed the Rubicon — then Friday's jobs report sent the bulls backward.
Bitcoin (BTC-USD) surged over 5% Thursday, then climbed as high as $82,000 Friday morning — less than $1,000 from the resistance that has capped it since February — before reversing below $80,000.
Bitcoin came within roughly $700 of the $83,000 ceiling Friday before reversing below $80,000. The black dotted line marks the Aug. 19 Treasury announcement that ignited the debasement trade. (Yahoo Finance AlphaSpace)
Jobs Report Delivers a Counterpunch
Employers added 162,000 jobs in August, nearly triple expectations, while June and July payrolls were revised higher by a combined 55,000. The unemployment rate held at 4.1%.
The report strengthened the labor side of the case for a September rate hike by the Federal Reserve, even as cooler wage growth left inflation as the next big hurdle. Bitcoin, gold, and many of Thursday's high-beta winners turned lower as shorter-term yields and the dollar rose.
Waller's Remarks Sparked Thursday's Rally
A day earlier, Fed Governor Christopher Waller had pushed markets in exactly the other direction.
U.S. Federal Reserve Governor Christopher Waller walks into the opening dinner of the Kansas City Fed's annual economic symposium in Jackson Hole, Wyoming, U.S., August 27, 2026. (REUTERS/Ann Saphir)
Waller opened the door to leaving interest rates unchanged at this month's meeting if inflation continues to cool.
Related: How jobs, inflation, and the Fed are all related
Index futures and Treasurys climbed after his remarks Thursday morning, while yields and the dollar fell. The odds of a September rate hike dropped to roughly 52% from 63% a day earlier, according to fed funds futures. The dollar posted its biggest drop since Aug. 19.
A Familiar Pattern
That was the day the bitcoin debasement trade took off after Treasury Secretary Scott Bessent doubled planned buybacks of some longer-dated Treasurys. Bitcoin, gold, and bonds surged as the dollar fell that day as well.
This time, Waller provided the spark.
Recent inflation data finally shows "some signs of disinflation," Waller said. If the improvement continues, he said he would support holding rates steady. A hot August inflation report could still put a hike back on the table.
In case the message wasn't clear enough, Waller loosened up during the Q&A:
"I'm going to paraphrase John Lennon here. Give disinflation a chance."
Market Movers
Investors did — for a day:
- Strategy (MSTR) soared 18%, its best day in nearly seven months.
- Robinhood (HOOD) jumped 16% for its biggest gain in over a year.
- Coinbase (COIN) climbed nearly 10%, its best day in six months.
The enthusiasm quickly escaped crypto:
- Palantir (PLTR) rallied nearly 8%.
- ARK Innovation ETF (ARKK) gained 4.5%, extending the comeback in some of Wall Street's riskiest trades.
Source
Yahoo FinanceWestern
Part of this Story
Bitcoin drops below $80,000 after US jobs report triples expectations, boosting September rate hike odds