News Maker 23

Bitcoin erased sharp early gains during Friday's trading (Sept. 4) after US labor data—coming in far stronger than anticipated—revived expectations for a Federal Reserve interest rate hike. Bitcoin had previously breached the $82,000 mark and touched a nearly four-month high before retreating to trade around $79,400. Despite shedding most of its intraday gains, Bitcoin remains on track for a weekly advance.

Pressure on Bitcoin mounted after the Nonfarm Payrolls report revealed that the US economy added 162,000 jobs in August, well above market forecasts of approximately 56,000. The unemployment rate held steady at 4.1%, while Average Hourly Earnings rose 0.3% month-over-month and 3.1% year-over-year. The data indicates a resilient labor market, even as annual wage growth begins to decelerate.

The robust employment figures have shifted expectations regarding Fed policy once again. The probability of a September rate hike rose after previously declining in the wake of dovish comments from Fed Governor Christopher Waller. Markets are now keenly awaiting CPI and PPI inflation data to determine if labor market strength is sufficient to prompt the Fed to raise interest rates again.

In the altcoin market, Ethereum traded around $2,526, XRP hovered between $1.43 and $1.45, BNB was around $722, and Solana traded in the $101–$104 range. Cardano traded near $0.224 and Dogecoin around $0.085, while Litecoin hovered around $51. Zcash emerged as a standout performer, recording a sharp rally and trading around $968.

Regarding industry fundamentals, crypto sentiment continues to be bolstered by regulatory developments in the United States. SEC Chair Paul Atkins indicated that the legislative process concerning the CLARITY Act is expected to return to the spotlight in mid-September. Furthermore, the easing of fresh military hostilities between the US and Iran has provided some breathing room for risk assets, although tensions in the Gulf region and high energy prices remain factors that could sustain inflationary pressure.

Newsmaker Analysis: Bitcoin is currently caught in a tug-of-war between positive regulatory fundamentals and bullish momentum, set against macro pressures stemming from robust US labor market data. As long as Bitcoin holds above the psychological $78,000–$79,000 range, the possibility of retesting the $82,000 level remains open. However, if next week’s inflation data comes in hot—reinforcing expectations of interest rate hikes—selling pressure could intensify. Conversely, cooling inflation could revive expectations for the Federal Reserve to hold rates steady, paving the way for Bitcoin and major altcoins to extend their gains. (arl)

Source: Newsmaker.id