Bitcoin retreated beneath $80,000 on Monday, pressured by a combination of firmer U.S. employment figures that have lifted the odds of a Federal Reserve interest-rate increase and a jump in oil prices linked to heightened U.S.-Iran tensions.
The cryptocurrency was changing hands at $79,381.99, down roughly 0.5% for the day.
Last week, bitcoin briefly pushed past $82,000, reaching a three-month high near $82,178.6 on Thursday before giving back gains following the U.S. employment release on Friday.
Monetary policy and oil weigh on risk appetite
Data published on Friday showed U.S. employers added 162,000 jobs in August, a pace that was nearly three times economists' expectations, while the unemployment rate remained at 4.1%.
That payrolls report shifted market expectations for monetary policy, with traders pricing in roughly a 60% chance of a Fed rate increase at the Sept. 15-16 meeting, up from 49% before the jobs data, according to CME FedWatch. Higher rates typically exert pressure on bitcoin and other speculative assets by increasing the opportunity cost of holding non-yielding positions and tightening overall financial conditions.
Compounding the cautious mood, Brent crude rallied to about $97 a barrel on Monday amid military tensions between the United States and Iran, prompting 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 had targeted U.S. Navy vessels with ballistic missiles.
Investors are now looking ahead to U.S. inflation readings for further guidance on the Fed's path, with producer prices scheduled for Thursday and consumer prices due on Friday. A hotter inflation print could reinforce expectations for tighter policy.
Institutional inflows provide some support
Despite the pullback, some institutional demand has offered a cushion for bitcoin. U.S. spot bitcoin exchange-traded funds logged about $1 billion in net inflows last week, according to data from SoSoValue.
Security breach disrupts Liquid Network activity
Market caution was further heightened by a security incident involving the Bitcoin-linked Liquid Network, a settlement platform used by cryptocurrency exchanges. The network halted new transactions after about $320 million worth of bitcoin was withdrawn from its federation wallet in what was described as a security exploit.
Liquid Network reported that roughly 4,000 of the approximately 4,200 bitcoin held in the wallet were taken. The withdrawals were executed through SideSwap, a settlement platform authorized to process transactions on the network.
Those behind the withdrawals characterized themselves as "purported white-hat hackers," but their identities and intentions remain unclear. Exchanges have suspended deposits and withdrawals tied to Liquid's bitcoin-linked LBTC token while investigations continue.
Altcoins trade mixed as markets stay cautious
Most alternative cryptocurrencies traded lower in range-bound action on Monday amid a cautious market backdrop.
- Ethereum rose 0.2% to $2,499.78.
- XRP fell 0.79% to $1.4053.
- Solana eased 1.1%.
- Cardano gained 1.1%.
- BNB dropped 0.79%.
- Among meme tokens, Dogecoin climbed 1.3%.
Overall, markets are parsing a mix of macroeconomic signals and sector-specific shocks as participants await upcoming inflation data that could further shape monetary policy expectations and risk asset performance.