Bitcoin Dips Under $80K as Rate Hike Odds Grow

Bitcoin recently pulled back below $80,000 and has been trading in a range between $77,200 and $82,100. The pause in momentum comes after a strong US jobs report showed the economy added 162,000 jobs in August. Because the labor market remains healthy, traders now see about a 60 percent chance that the Federal Reserve might raise interest rates on September 16.

This shift in expectations sent two year US Treasury yields above 4.34 percent, making government bonds more attractive compared to riskier assets like crypto. Even with this pressure, Bitcoin has held its ground reasonably well. US spot exchange traded funds brought in nearly $1 billion in net inflows last week, showing that institutional demand is still supporting the market.

Looking ahead, traders should watch the upcoming inflation report as the next big test for Bitcoin. Analysts note that more than 71 percent of the total coin supply is currently in profit, which is close to historical levels that often trigger selling. A weekly close above $82,100 could signal that the recovery is back on track.