News Maker 23

Bitcoin traded lower on Monday (Sept. 7), slipping back below the psychological US$80,000 level after strong U.S. labor data raised expectations for a Federal Reserve interest rate hike. According to the latest data from Investing.com, Bitcoin traded around US$79,400–US$79,500, down approximately 0.7% over the past 24 hours. Bitcoin had previously surged past US$82,000 last week but lost momentum following the release of the U.S. jobs report.

Non-Farm Payrolls data showed the U.S. economy added 162,000 jobs in August—well above forecasts—while the unemployment rate held steady at 4.1%. The report increased market odds of a Fed rate hike at the September 15–16 meeting to around 60%. Higher interest rates tend to weigh on speculative assets like Bitcoin by tightening liquidity conditions and increasing the appeal of yield-bearing assets.

Pressure on the crypto market also stemmed from rising oil prices and escalating U.S.–Iran tensions. Brent crude remained around US$96–US$97 per barrel after an attack on a tanker near the Strait of Hormuz sparked concerns over energy supply disruptions. High energy prices could exacerbate global inflationary pressures and make central banks more cautious about easing monetary policy.

Altcoins also trended lower. Ethereum traded around US$2,490 (down ~0.4%), XRP hovered near US$1.40 (down ~1.4%), and Solana fell about 1.6% to the US$105 range. BNB weakened nearly 2% to around US$743, while Cardano traded near US$0.219 (down ~0.3%). Dogecoin also declined to around US$0.0897. Beyond macroeconomic pressures, the market is also contending with negative sentiment stemming from security issues on the Liquid Network. The Bitcoin-based settlement network halted new transactions after approximately US$320 million worth of Bitcoin was withdrawn from a federation wallet in a security exploit. The incident has heightened concerns regarding digital asset infrastructure risks, even though the parties responsible claimed to be "white-hat hackers."

Nevertheless, institutional demand continues to support Bitcoin. Spot Bitcoin ETFs in the United States recorded net inflows of around US$1 billion last week, indicating that institutional investor interest has not fully waned despite the resurgence of volatility.

Newsmaker Analysis: Bitcoin currently faces a sideways to slightly bearish bias as long as it remains below US$80,000. The US$79,000 mark serves as a critical support level; failure to hold this level could pave the way for a deeper correction. Market focus has now shifted to this week's US PPI and CPI data. A resurgence in inflation could strengthen the likelihood of Federal Reserve interest rate hikes and put pressure on Bitcoin and altcoins, whereas lower inflation figures could potentially trigger a rebound in risk assets. (arl)

Source: Newsmaker.id