- Bitcoin fell over 2% as stronger US jobs data increased September rate hike expectations.
- BTC remains on track for a third consecutive weekly gain despite Friday’s sharp decline.
- Spot Bitcoin ETFs attracted $175 million, supporting demand amid rising macroeconomic uncertainty.
Bitcoin faced fresh selling pressure Friday after stronger US jobs data changed rate expectations. BTC fell more than 2%, sliding from $81,300 to $78,600. Buyers later pushed the price back toward $79,500 to $79,800. The sharp move followed data showing stronger hiring across the US economy.
Strong Jobs Data Puts Bitcoin Under Pressure
The US Bureau of Labor Statistics reported 162,000 new nonfarm jobs during August. Economists had expected only 55,000 new positions. The unemployment rate remained unchanged at 4.1%. Payroll figures for June and July also received upward revisions. Combined revisions added another 55,000 jobs to previous estimates. The report strengthened expectations for tighter monetary policy. Traders now see greater odds of another Federal Reserve rate hike.
CME Group’s FedWatch tool shows a 58% chance of a quarter-point September hike. Before the jobs report, traders placed those odds near 52%. Polymarket odds also moved toward a near 50/50 split. Markets now show little confidence around the Fed’s next decision. The shift contrasts with comments from Fed Governor Christopher Waller. Waller said Thursday that he favored keeping rates unchanged. Friday’s employment figures quickly changed the market mood.
Bitcoin’s reaction remained relatively contained despite the sharp intraday decline. BTC still remained on track for a roughly 3% weekly gain. The weekly advance would mark Bitcoin’s third consecutive positive week. Earlier this week, BTC reached $82,178.60. That level marked Bitcoin’s highest price since mid-May. The latest rally also produced substantial gains from recent lows. Crypto analyst Bull Theory highlighted the scale of Bitcoin’s recovery. BTC climbed nearly $20,000 within only 20 days.
Regulation Adds Another Catalyst for Crypto Markets
US crypto regulation also remains a major market focus. SEC Chair Paul Atkins expects a Senate vote on the Clarity Act September 15. Atkins urged lawmakers to pass the legislation before the end of September. The SEC also plans separate crypto legislation alongside the Clarity Act. However, lawmakers still face disagreements over several key provisions. Stablecoin yield payments remain among the major points of contention.
Rules covering policymakers and crypto trading also remain unresolved. Further progress could provide greater clarity for digital asset markets. Meanwhile, corporate Bitcoin exposure continues attracting attention. Strategy, the largest corporate Bitcoin holder, rallied nearly 18% Thursday. The move highlights continued investor interest in Bitcoin-focused companies.
Corporate demand could remain another important market driver. Bitcoin now faces a crucial test after Friday’s sharp reversal. Strong employment data could keep rate concerns elevated. Still, ETF inflows and consecutive weekly gains offer reasons for optimism. Traders will closely watch inflation figures before making stronger September rate bets.