Bitcoin (BTC) falls below $80,000, strong employment data exacerbates interest rate hike expectation

Bitcoin maintained its upward momentum for the third consecutive week, as SEC leaders spoke on the regulatory framework for crypto-assets

After the release of strong U.S. employment data, expectations for a Federal Reserve interest rate hike rose, causing Bitcoin prices to fall by more than 2%. Previously, BTC fell back from $81,300 to an intraday low of $78,600, and then rebounded to the $79,500 - 79,800 range. Despite Friday's correction, Bitcoin maintained a 3% weekly gain, marking three consecutive weeks of positive growth.

Market commentator Bull Theory pointed out that BTC surged by about $20,000 in 20 days, resulting in the liquidation of a record $11.4 billion in leveraged transactions. At the same time, the U.S. spot Bitcoin ETF attracted a net inflow of US$175 million on September 4, with BlackRock's IBIT product leading the way.

Jobs data boosts expectations of interest rate hikes, triggers short-term sell-off

On Friday, with a strong U.S. jobs report released and market participants 'expectations for the Federal Reserve to raise interest rates increased, Bitcoin prices fell sharply by more than 2%. The sell-off pushed BTC from $81,300 to an intraday low of $78,600 before recovering slightly to around $79,500 - 79,800 at the end of trading on Friday.

Data from the U.S. Bureau of Labor Statistics showed that non-farm payrolls increased by 162,000 in August, well above economists 'expectations of 55,000. The unemployment rate remained unchanged at 4.1%, while salary calculations were raised by a total of 55,000 jobs in June and July, respectively.

This employment data immediately affected market sentiment. CME Group's FedWatch tool data shows that traders currently believe the probability of the Fed raising interest rates by 25 basis points at its September 16 meeting is about 58%, up from 52% before the report was released. Data from forecast market Polymarket also shows that the odds between raising interest rates and maintaining current policies are closing.

President Donald Trump has again criticized the Federal Reserve over employment data. He posted on Truth Social: "The Fed board and its new leadership must act wisely-this time be patriots. High interest rates put the United States at a very unfair disadvantage, and I will not allow that to happen!"

The day before, Federal Reserve Governor Christopher Waller expressed support for keeping interest rates unchanged at current levels and awaiting upcoming inflation data. Waller's comments briefly quelled market anxiety, but Friday's jobs data once again reversed market sentiment.

Bitcoin reports positive gains for three consecutive weeks

Despite Friday's correction, Bitcoin is still expected to achieve a weekly gain of 3%, the third consecutive week it has recorded positive growth. Earlier this week, BTC hit $82,178.6, its strongest level since mid-May.

Cryptocurrency market analyst Bull Theory emphasized that Bitcoin experienced a sharp rebound of nearly $20,000 in 20 days, climbing from a low of $62,535 to more than $82,300. According to Bull Theory, this trend added $390 billion to Bitcoin's total market value and led to the liquidation of leveraged positions worth $11.4 billion, which is called "the largest short clearing chain reaction in the entire history of crypto."

Spot Bitcoin ETFs also showed strong investment demand. Wu Blockchain data shows that the U.S. spot Bitcoin ETF received a cumulative net inflow of US$175 million on September 4, which was the third consecutive trading day that positive inflows were recorded. Among them, BlackRock's IBIT products led the way with US$117 million, and Fidelity's FBTC contributed US$57.22 million.

SEC Chairman looks forward to legislative process for regulatory framework

Securities and Exchange Commission Chairman Paul Atkins said he expects the Senate to vote on the Clarity Act on September 15 and urges the Legislature to approve it before the end of the month. Atkins also revealed that the SEC is developing its own crypto-asset legislation designed to supplement the Clarity Act.

Previously, the Clarity Act encountered legislative obstacles in Congress due to disputes over the distribution of stablecoins 'earnings and the trading rules of cryptocurrencies that regulatory policymakers.

Strategy, the largest holder of enterprise-level bitcoin, surged nearly 18% during Thursday's trading session.