TLDR
- Bitcoin experienced a decline exceeding 2% following robust U.S. employment figures that amplified Federal Reserve rate hike speculation
- BTC retreated from $81,300 to reach a session low of $78,600 before rebounding to the $79,500–$79,800 range
- Notwithstanding Friday’s pullback, Bitcoin maintains momentum for a 3% weekly advance — marking three consecutive weeks of positive gains
- Market commentator Bull Theory noted BTC’s remarkable $20,000 surge over 20 days, which resulted in a historic $11.4 billion in liquidated leveraged trades
- U.S.-based spot Bitcoin ETFs attracted $175 million in net capital inflows on September 4, with BlackRock’s IBIT taking the lead
Bitcoin experienced a sharp decline exceeding 2% on Friday following the release of a robust U.S. employment report that prompted market participants to increase their expectations for a Federal Reserve interest rate increase. The selloff drove BTC from $81,300 to reach a session bottom at $78,600, followed by a modest rebound to approximately $79,500–$79,800 as Friday trading concluded.
The Bureau of Labor Statistics disclosed that nonfarm payrolls expanded by 162,000 in August — substantially exceeding the 55,000 that economic analysts had anticipated. The unemployment rate remained unchanged at 4.1%, while payroll calculations for June and July underwent upward revisions totaling 55,000 positions.
The employment figures immediately influenced market sentiment. Data from CME Group’s FedWatch tool indicates traders currently assign approximately a 58% probability to a quarter-point rate increase at the September 16 Federal Reserve meeting, climbing from 52% prior to the report’s release. Polymarket prediction markets shifted to nearly even odds between a rate hike and maintaining current policy.
President Donald Trump responded to the employment data with renewed criticism directed at 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 the previous day that he supports maintaining current interest rate levels while awaiting forthcoming inflation metrics. Waller’s comments had temporarily calmed market anxieties before Friday’s employment data shifted sentiment once again.
Bitcoin Maintains Momentum for Third Consecutive Weekly Advance
Notwithstanding Friday’s retreat, Bitcoin remained positioned to secure a 3% weekly gain — representing its third successive week of positive movement. Earlier during the week, BTC reached $82,178.6, marking its strongest level since mid-May.
Cryptocurrency market analyst Bull Theory highlighted that Bitcoin experienced a dramatic rally of nearly $20,000 within a 20-day period, climbing from a low point of $62,535 to exceed $82,300. According to Bull Theory, this movement contributed $390 billion to Bitcoin’s overall market capitalization and resulted in $11.4 billion worth of leveraged position liquidations — characterizing it as “the largest shorts liquidation cascade in entire crypto history.”
Spot Bitcoin ETFs similarly demonstrated robust investor demand. Data from Wu Blockchain reveals that U.S. spot Bitcoin ETFs accumulated $175 million in net capital inflows on September 4, representing three consecutive trading sessions of positive flows. BlackRock’s IBIT product dominated with $117 million, while Fidelity’s FBTC contributed $57.22 million.
SEC Leadership Addresses Cryptocurrency Regulatory Framework
SEC Chair Paul Atkins indicated he anticipates the Senate will conduct a vote on the Clarity Act on September 15 and urged legislative bodies to approve it before the month concludes. Atkins additionally revealed the SEC is developing its own cryptocurrency legislation designed to complement the Clarity Act.
The Clarity Act has encountered legislative obstacles in Congress stemming from disputes regarding stablecoin yield distributions and regulations governing policymakers’ cryptocurrency transactions.
Strategy, recognized as the largest corporate holder of Bitcoin, surged nearly 18% during Thursday’s trading session.
