Bitcoin slipped below $80,000 on Monday as stronger-than-expected U.S. jobs data revived expectations for a Federal Reserve interest-rate hike this month. Higher oil prices amid escalating U.S.-Iran tensions added further pressure on risk assets, while a major exploit involving the Bitcoin-linked Liquid Network raised fresh concerns about cryptocurrency infrastructure.
Bitcoin traded at $79,724.8 by 01:01 ET (05:01 GMT), down about 0.3% on the day. The cryptocurrency had briefly climbed above $82,000 last week, reaching a more than three-month high of approximately $82,178.6 on Thursday before retreating after Friday’s U.S. employment report.
Fed bets and oil pressure BTC
U.S. employers added 162,000 jobs in August, nearly triple economists’ expectations, while the unemployment rate remained at 4.1%. The stronger labor-market reading pushed markets to price roughly a 60% probability of a Fed rate increase at the September 15-16 meeting, up from 49% before the jobs data, according to CME FedWatch.
Higher interest rates can weigh on Bitcoin and other speculative assets by increasing the opportunity cost of holding non-yielding investments and tightening financial conditions.
Oil prices have added another source of uncertainty. Brent crude climbed to around $97 a barrel on Monday as escalating military tensions between the United States and Iran raised concerns about potential supply disruptions in the Middle East.
The U.S. military said it struck three Iranian oil tankers on Saturday after Iranian forces targeted U.S. Navy vessels with ballistic missiles. Investors are now awaiting U.S. inflation data for additional clues about the Fed’s policy path.
- Fed meeting: September 15-16
- U.S. PPI: Thursday
- U.S. CPI: Friday
- August payrolls: 162,000
- Unemployment rate: 4.1%
- Fed hike probability: About 60%
A hotter inflation reading could reinforce expectations for tighter monetary policy, potentially creating additional headwinds for Bitcoin.
Liquid Network hit by $320M exploit
Despite the recent pullback, institutional demand has provided some support. U.S. spot Bitcoin exchange-traded funds recorded approximately $1 billion in net inflows last week, according to SoSoValue, highlighting continued institutional interest despite broader macroeconomic pressure.
However, the cryptocurrency market is also dealing with a major security incident involving the Bitcoin-linked Liquid Network, a settlement platform used by cryptocurrency exchanges. The network halted new transactions after approximately $320 million worth of Bitcoin was withdrawn from its federation wallet in a security exploit.
Liquid Network said around 4,000 of roughly 4,200 Bitcoin held in the wallet were taken. The withdrawals were conducted through SideSwap, a settlement platform authorized to facilitate transactions on the network.
The individuals responsible reportedly described themselves as “purported white-hat hackers,” although their identities and intentions remained unclear. Exchanges also suspended deposits and withdrawals involving Liquid’s Bitcoin-linked LBTC token while the incident was investigated.
Conclusion
Bitcoin’s decline below $80,000 reflects a combination of rising Fed rate-hike expectations, elevated oil prices and renewed geopolitical uncertainty. Although around $1 billion in weekly spot Bitcoin ETF inflows provided institutional support, the $320 million Liquid Network exploit has added another risk to the crypto market. With U.S. PPI and CPI data due this week, inflation figures could determine whether Bitcoin recovers above $80,000 or faces further pressure.
Sources & Methodology
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