Bitcoin dipped below $80,000 on September 4 following the release of a stronger-than-expected August jobs report that complicated the Federal Reserve's policy calculus. The cryptocurrency recovered to trade near the $80,000 level after an intraday low of $78,660.
The Bureau of Labor Statistics reported nonfarm payrolls rose by 162,000 in August, significantly outpacing the average monthly gain of 31,000 over the previous 12 months. The unemployment rate held steady at 4.1%, while the BLS also revised upward June and July payroll figures by a combined 55,000 jobs.
The stronger labor market data immediately moved financial markets. The two-year Treasury yield rose to approximately 4.40% from 4.33%, while the 10-year yield climbed to near 4.80% from just under 4.75%. The dollar index touched 99.932, up from roughly 99.035 before the report release.
Fed Governor Christopher Waller had previewed the policy implications the day before the jobs report. Describing the labor market as satisfactory and stable, Waller indicated that August inflation data would heavily influence his September stance. He stated that continued progress toward the Fed's 2% inflation goal would support maintaining the current policy rate, while a hot inflation reading could prompt him to consider a rate increase.
The stronger-than-expected payrolls report removed what Waller called an obvious labor deterioration that could have outweighed an unfavorable inflation print, shifting the focus of the September policy debate more firmly onto inflation dynamics.
Bitcoin now faces two near-term policy tests. The August consumer price index is scheduled for release on September 11 at 8:30 a.m. ET, followed by the Federal Reserve's policy decision on September 16. A softer inflation reading could support the case for steady policy and potentially ease pressure on the cryptocurrency, while a hotter print would strengthen arguments for maintaining or tightening monetary policy.
