Key Highlights
- Bitcoin experienced a decline exceeding 2% following robust U.S. employment data that elevated Federal Reserve rate hike probabilities
- BTC retreated from $81,300 to touch $78,600 before stabilizing around the $79,500–$79,800 range
- Friday’s pullback notwithstanding, Bitcoin maintains trajectory for a 3% weekly advance — marking its third consecutive positive week
- Market analyst Bull Theory noted BTC’s remarkable $20,000 rally over 20 days, which resulted in a historic $11.4 billion in leveraged position liquidations
- U.S. spot Bitcoin ETFs registered $175 million in net capital inflows on September 4, with BlackRock’s IBIT dominating flows
Bitcoin experienced a sharp decline exceeding 2% on Friday following the release of surprisingly robust U.S. employment figures, which prompted market participants to increase expectations for a Federal Reserve interest rate increase. The selloff sent BTC tumbling from $81,300 to an intraday nadir of $78,600, before mounting a modest rebound to approximately $79,500–$79,800 during late Friday trading.
According to the Bureau of Labor Statistics, nonfarm payrolls expanded by 162,000 positions in August — approximately three times the 55,000 figure economists had anticipated. The unemployment rate remained unchanged at 4.1%, while payroll revisions for June and July collectively added 55,000 jobs to previous estimates.
The employment figures immediately recalibrated market sentiment. Data from CME Group’s FedWatch tool indicates traders now assign approximately a 58% probability to a 25-basis-point rate increase at the September 16 Federal Reserve meeting, climbing from 52% prior to the report’s release. Polymarket prediction markets reflected a nearly even division between expectations for a rate hike versus maintaining current levels.
President Donald Trump responded to the employment data by intensifying pressure on the Federal Reserve. Through a Truth Social message, Trump stated: “The Fed Board, with its great new leader, must get smart – BE PATRIOTS for a change. High interest rates put the U.S.A. at a very unfair disadvantage, and I won’t allow that to happen!”
Federal Reserve Governor Christopher Waller had indicated just one day prior that he supports maintaining interest rates at current levels, contingent upon forthcoming inflation metrics. This commentary had temporarily alleviated market anxiety before Friday’s employment statistics shifted sentiment once again.
Bitcoin Maintains Third Consecutive Weekly Advance
Notwithstanding Friday’s downturn, Bitcoin remained positioned to secure a 3% weekly increase — extending its positive performance to three straight weeks. During the week, BTC reached $82,178.6, representing its strongest level since mid-May.
Cryptocurrency market analyst Bull Theory observed that Bitcoin climbed approximately $20,000 across merely 20 days, ascending from a trough of $62,535 to exceed $82,300. Bull Theory noted this movement increased Bitcoin’s market capitalization by $390 billion and precipitated $11.4 billion in leveraged position liquidations — characterizing it as “the largest shorts liquidation cascade in entire crypto history.”
Spot Bitcoin ETFs demonstrated robust capital attraction. Wu Blockchain reported that U.S. spot Bitcoin ETFs accumulated $175 million in net inflows on September 4, extending the inflow streak to three consecutive trading sessions. BlackRock’s IBIT topped the list with $117 million, while Fidelity’s FBTC contributed $57.22 million.
SEC Leadership Addresses Crypto Regulatory Framework
SEC Chair Paul Atkins indicated anticipation for Senate consideration of the Clarity Act on September 15 and urged legislators to advance the measure before month-end. Atkins additionally disclosed that the SEC is developing complementary cryptocurrency legislation designed to function in conjunction with the Clarity Act.
The Clarity Act has encountered congressional gridlock stemming from disputes concerning stablecoin yield distribution and regulations governing policymaker cryptocurrency transactions.
Strategy, recognized as the largest corporate Bitcoin holder, surged approximately 18% during Thursday’s trading session.
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