Bitcoin falls below $80,000 after stronger US jobs report, ETF inflows hit $730 million

Labor market data stirs rate expectations

The US Bureau of Labor Statistics reported that the economy added 162,000 jobs in August and unemployment held steady at 4.1%. July’s payroll figures were also revised upward, shifting from an initial decline of 23,000 to an increase of 21,000. These changes suggested a more resilient labor market than previously thought, prompting a market-wide review of assumed Federal Reserve policy paths.

Federal Reserve Governor Christopher Waller stated on September 3 that if inflation continues to improve, he would likely favor keeping rates unchanged. However, he noted that a strong August inflation reading could provide justification for raising rates. The robust jobs data intensified the debate among policymakers ahead of the central bank’s meeting set for September 15-16.

Federal Reserve Governor Christopher Waller linked his rate decision to incoming inflation data, indicating that sustained improvement would support a pause, while resurgence would reopen debate on further hikes.

Bitcoin’s sharp move reflects macroeconomic sensitivity

Prior to the jobs report, Bitcoin traded above $81,000. Within three minutes of the data’s release, the price slipped below $80,000, marking a drop of approximately $1,600. This quick reaction underscored how leveraged positions in the cryptocurrency market respond to shifting expectations for interest rate changes. Rising rates generally favor yield-bearing assets, casting pressure on non-yielding instruments like Bitcoin.

Reuters reported an uptick in Treasury yields following the jobs data, as some investors priced in a higher chance of a September rate increase. As yields rose, risk appetite fell, particularly impacting markets like BTC. Observers highlighted correlations between Bitcoin, the US dollar, and bond yields in the current environment.

Institutional ETF inflows provide partial offset

On September 3, Bitcoin exchange-traded funds posted inflows totaling $730 million, according to data reported by Yahoo Finance. This marked the strongest daily gain for Bitcoin ETFs since January, indicating that some institutions continued to seek exposure even as prices faltered.

While ETF inflows signal ongoing demand for Bitcoin, analysts cautioned that sustained high yields could still diminish risk-taking across financial markets. The balance between continued institutional interest and broader macroeconomic pressures remains closely monitored by market participants.

Bitcoin ETFs saw $730 million in daily inflows, showing persistent investment interest ahead of the jobs-driven selloff.

Mini dictionary: Exchange-traded fund (ETF): An investment fund traded on stock exchanges, ETFs track the price of assets like stocks, commodities, or cryptocurrencies, allowing investors to gain exposure without directly buying the asset.

Upcoming inflation data holds key for BTC direction

The next pivotal data release is the August Consumer Price Index, scheduled for September 11. Federal Reserve officials have emphasized that their decision at the September 15-16 meeting will depend heavily on incoming inflation figures. Softer inflation numbers could encourage officials to hold rates steady, potentially easing recent pressure on Bitcoin and risk assets. Conversely, higher inflation may reinforce the jobs-fueled selloff.

Bitcoin’s recent decline reflects the influence of employment metrics, Treasury yields, and shifting monetary policy expectations on crypto positioning. Investors will closely watch whether Bitcoin can reclaim the $80,000 level and how macroeconomic signals develop in the coming weeks.