Fed Rate Cut Delayed as Strong Jobs Data Tests Bitcoin
Bitcoin Levels, Flows, and Citi Fed Rate Cut Expectation
The price path around these events is the clearest evidence of how sensitive BTC remains to macro surprises. Bitcoin fell below $80,000 right after the August jobs release, reversing from an intraday high near $81,370, and was later quoted near $79,600, down about 1.5% on the day.
Ahead of the September Fed meeting, as hike odds moved above 92%, BTC fell below $76,000 before the post-decision dip toward $75,000 and the subsequent climb to a brief touch of $87,000, per the latest price action review.
Flow data backs up the recovery narrative. US spot Bitcoin ETFs logged $433 million in net inflows on September 18 after a stretch of heavy withdrawals earlier that week, suggesting institutional demand re-engaged once the hike was priced in rather than feared.
For us, the actionable variables are the same ones that moved Bitcoin twice in the past month: real yields, Treasury yields, dollar strength, spot ETF flows, and the next round of inflation and payroll prints.
If labor data stays firm and inflation proves sticky, a higher-for-longer stance keeps yields elevated and tightens the liquidity backdrop for crypto. If yields ease and ETF demand persists, Bitcoin can keep absorbing hawkish surprises well before Citi's June 2027 cut ever arrives.
This article has been published in cryptonews.com via Yahoo News.
Fed Rate Cut Delayed as Strong Jobs Data Tests Bitcoin
Citigroup pushed its forecast for the Fed first interest rate cut to June 2027 after US employers added 162,000 jobs in August, more than triple the 53,000 economists had penciled in. The revision extends the timeline for lower borrowing costs by nine months.Now, it opens a question Bitcoin...
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