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Source: Newsmaker.id
Bitcoin fell sharply during Friday's trading (Sept 4) after stronger-than-expected US labor data reignited speculation regarding a Federal Reserve interest rate hike in September. Bitcoin dropped approximately 3.5% to $78,649, reversing an earlier rally that had pushed the largest cryptocurrency back above the $80,000 mark.
Pressure mounted after US Nonfarm Payrolls (NFP) data showed an addition of 162,000 jobs in August, far exceeding market expectations. The unemployment rate held steady at 4.1%, reinforcing the view that the US labor market remains resilient. The data drove up two-year Treasury yields and strengthened the US dollar.
The decline poses a new test for Bitcoin's ability to maintain the psychological $80,000 level. Just a day earlier, Bitcoin had successfully reclaimed that level after falling Treasury yields and a weaker dollar boosted appetite for risk assets. Sentiment had also been supported by comments from Fed Governor Christopher Waller, who advocated for keeping interest rates unchanged if inflation continued to cool.
However, the strong NFP report provided fresh ammunition for the Federal Reserve's hawkish camp. Solid labor market conditions increased the likelihood of a September rate hike. Nevertheless, Bitcoin's trajectory is also influenced by other factors, such as liquidity conditions, credit growth, banking sector balance sheets, and stablecoin supply within the crypto market.
Pressure was also evident in crypto-related stocks. Coinbase fell about 4%, while Strategy and Circle Internet Group each declined by approximately 1%. These movements reflect "risk-off" sentiment, as the labor report weighed not only on Bitcoin but also on companies with significant exposure to digital assets.
Newsmaker Analysis: Bitcoin's failure to hold the $80,000 level indicates that this area remains a key resistance point. As long as the US dollar and Treasury yields remain high, Bitcoin's upside potential may be limited. Attention now shifts to US CPI and PPI data. Hot inflation could reinforce the rate-hike scenario and push Bitcoin lower, whereas easing inflation could open the door for a rebound and a retest of the US$80,000 level. (arl)
Source: Newsmaker.id