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Source: The Hindu BusinessLine

The Hindu BusinessLine
Source
Markets
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1 min
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07 Sept
Published
Markets
1 min read· The Hindu BusinessLine

Bitcoin slips below $80,000 as US payrolls fuel rate-hike bets

Bitcoin traded below $80,000 as US jobs figures strengthened bets on a Federal Reserve rate increase. The cryptocurrency touched $78,649, with stocks and bonds also falling.

The move followed an August increase of 162,000 in US nonfarm payrolls. The employment figure put expectations for the Federal Reserve’s next interest-rate move in focus, as traders placed greater weight on the possibility of a hike.

Bitcoin’s reported low placed it below the $80,000 threshold highlighted in the market update. However, the report does not give its earlier trading price or the size of its percentage decline. It also does not state whether the cryptocurrency later recovered from that low.

The weakness extended beyond the cryptocurrency market: equities and bonds were down as well. The supplied update does not identify the stock markets or bond instruments involved, or quantify their losses. That limits how precisely the wider market reaction can be compared with Bitcoin’s fall.

The key distinction is between a change in rate expectations and an actual policy decision. The report describes stronger bets on a Fed hike after the payroll release; it does not report a new rate announcement or specify when an increase might happen.

Source: The Hindu BusinessLine