Bitcoin drops below $80,000 as hot jobs data spurs US Federal Reserve hike bets - The Straits Times

Bitcoin’s slide beneath the $80,000 threshold this week illustrates how deeply the largest cryptocurrency remains tethered to macroeconomic forces. The trigger was a stronger-than-expected US jobs report, which investors read as a signal that the Federal Reserve may need to keep interest rates higher for longer—or even resume hikes. Because Bitcoin is a risk asset with no yield, its valuation is particularly sensitive to the opportunity cost of holding it when cash and bonds offer attractive, guaranteed returns.

For market participants, the development is a reminder that digital assets do not operate in a vacuum. Bitcoin’s recent trading pattern has increasingly mirrored moves in tech stocks and rate-sensitive instruments, suggesting that liquidity conditions—not just adoption narratives—are the primary price driver. A resilient labour market gives the Fed room to maintain its restrictive stance, which historically pressures speculative assets.

What to watch now is twofold. First, upcoming inflation prints will either reinforce or challenge the hawkish repricing. Second, observe whether Bitcoin’s drop triggers broader liquidation cascades or simply a recalibration of expectations. The asset’s ability to hold support above major moving averages in the coming sessions will offer clues about whether this is a short-term shock or the start of a deeper correction driven by policy reality.