Bitcoin's $80,000 breakout just failed after a blowout jobs report

Bitcoin's $80,000 breakout attempt was thwarted after a strong jobs report was released on Friday. Following the report, the cryptocurrency surged over 5% on Thursday, reaching as high as $82,000, just $1,000 away from the resistance level that has been holding it since February. However, it quickly reversed and fell below the $80,000 threshold.

The Federal Reserve's job report revealed that employers added 162,000 jobs in August, significantly surpassing expectations. Additionally, the unemployment rate remained steady at 4.1%. The positive employment data supported the case for a potential September rate hike by the Federal Reserve, despite concerns about rising wages and persistent inflation.

As shorter-term yields and the dollar strengthened, cryptocurrencies and high-beta stocks, such as Bitcoin, gold, and several high-growth tech companies, experienced a decline. The odds of a September rate hike dropped to roughly 52% from 63% the previous day. Analysts noted that a sustained move above $83,000 would be necessary to break the price range that has contained Bitcoin since February.