Bitcoin Falls Below $77,000 as Rate Hike Expectations Remain Unchanged

Bitcoin has fallen below $77,000, currently trading at $76,985. This movement follows the release of July data indicating a weakening labor market in the U.S., but it has not altered market expectations for another rate hike by the Federal Reserve. According to data from the U.S. Bureau of Labor Statistics, there were 7.3 million job openings in July, with hiring at 5.1 million and voluntary separations at 3.1 million. These figures were revised down from June, showing a decline in labor mobility, but the debate surrounding monetary policy continues. The August ISM Manufacturing Index dropped to 54.6, down from 55.6 the previous month, with new orders falling to 53.7 and the employment component dropping to 51.2. The prices index remained steady at 71.1 for the second consecutive month. Rising oil prices have intensified market concerns about inflation, with WTI increasing by 5.2% to close at $90.22 and Brent rising by 4.6% to $94.65. In this environment, the CME FedWatch indicates a 66% probability of a rate hike in September. U.S. Treasury yields have risen, with the 2-year Treasury yield at 4.39% and the 10-year Treasury yield at 4.79%. This makes the outlook for Bitcoin and other risk assets less favorable, as it increases the returns on dollar-denominated assets. The U.S. Bitcoin spot ETF is also under pressure, recording a net outflow of $236.46 million on September 1, compared to a net inflow of $216.7 million on August 31.

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