Bitcoin slips toward $78k as as Fed, oil pressures mount
Investing.com-- Bitcoin slipped toward $78,000 on Tuesday, extending a pullback from last week's three-month high as stronger-than-expected U.S. jobs data revived expectations for a Federal Reserve interest-rate hike this month, while surging oil prices added to inflation concerns.
The world's largest cryptocurrency last traded 1.6% lower at $78,406.5 by 02:28 ET (06:28 GMT).
It briefly climbed above $82,000 last week before retreating following Friday's U.S. employment report.
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Fed Sept hike bets hold near 60%
U.S. employers added 162,000 jobs in August, almost triple economists' expectations, while the unemployment rate held at 4.1%.
The data pushed the market-implied probability of a 25-basis-point Fed rate hike at the Sept. 16 meeting to around 60%, according to CME FedWatch, although other market-based measures put the probability closer to the low-50% range.
Higher interest rates typically pressure Bitcoin and other risk-sensitive assets by increasing the appeal of yield-bearing investments and tightening financial conditions. Treasury yields have also risen, with the 10-year yield around 4.8%.
Investors are now awaiting U.S. producer prices on Thursday and consumer inflation data on Friday, the last major inflation readings before the Fed meeting.
Oil prices have added another headwind. Brent crude rose to around $97.50 a barrel on Tuesday, its highest in about six weeks, as escalating U.S.-Iran tensions raised concerns over supply disruptions and shipping through the Strait of Hormuz.
Despite the pullback, Bitcoin remains well above its recent lows after gaining roughly 25% in August. U.S. spot bitcoin ETFs also recorded about $1 billion in inflows last week, extending a three-week streak of positive flows and providing support for the market.
Crypto price today: altcoins extend losses
Most altcoins fell on Tuesday, extending losses amid a cautious mood.
World no.2 crypto Ethereum lost 1.3% to $2,466.92.
World no. 3 crypto XRP fell 1.8% to $1.38.
Solana eased 2.3%, while Cardano declined 1.1%.
Among meme tokens, Dogecoin slipped 0.7%.
