The U.S. economy added 162,000 jobs in August, nearly triple the 53,000 gain economists polled by Dow Jones had forecast, according to the Bureau of Labor Statistics report released Friday. The unemployment rate held steady at 4.1%, matching expectations, and both June and July payrolls were revised higher.

The blowout print rattled markets. Bitcoin fell back below $80,000 after touching a four-month high of $82,240 earlier Friday, sliding more than 2% to trade near $79,300 within minutes of the release. Fed funds futures traders pushed the odds of a September rate hike to 58%, up from 49.4% the day before, according to the CME FedWatch tool.

Equities and gold felt the same pressure. The Dow Jones Industrial Average fell 226 points, or 0.4%, the S&P 500 slid 0.2%, and the Nasdaq Composite ticked up 0.1%. Treasury yields rose across the curve, with the two-year note touching its highest level since January 2025. Gold fell to a session low of $4,380 an ounce, on pace for a second straight weekly loss.

"Great jobs number just announced, breaking all estimates," President Donald Trump wrote on Truth Social Friday. He renewed his demand that the Fed cut rates and threatened to halt trade with countries running a surplus against the U.S. if it doesn't. The public pressure underscores the political stakes surrounding the Fed's incoming decision, though the central bank sets policy independently of the White House.

Bitcoin had climbed to its four-month high after Fed Governor Christopher Waller signaled Thursday he'd be "inclined to support" holding rates steady, but the payroll beat closed off the case for standing pat. It was the mirror image of what happened after July's jobs miss, when a soft print cut rate-hike odds and gave crypto room to run.

Higher rates make risk-free assets more attractive, raising the bar for what stocks and crypto need to return to justify holding them over U.S. Treasuries. Rate hikes also tend to strengthen the dollar, which weighs on dollar-priced assets like Bitcoin the same way it weighs on gold—that is the mechanical link between a stronger jobs number and a weaker Bitcoin price.

Bitcoin opened September near $77,500, entering a month crypto traders have nicknamed Red September—the token has closed lower in eight of the last 13 Septembers. Friday's reversal fits the script, even after Thursday's short squeeze wiped out more than $415 million in bearish bets.

Crypto market snapshot

Overall, crypto sentiment cooled but stayed bullish. CoinMarketCap's Fear and Greed Index read 75, still within "greed" territory, while total crypto market capitalization held near $2.67 trillion, up 0.11% on the day—though bullish sentiment has receded somewhat from last week's "extreme greed" readings.

Spot Bitcoin ETFs logged $730.8 million in net inflows, extending the buying that started with Thursday's rate-pause optimism. CoinMarketCap's Altcoin Season Index sat at 38, still favoring Bitcoin over the broader field.

The Fed's rate decision lands September 15-16—the first hike under consideration since the tightening cycle that ended in July 2023. The next jobs report, covering September payrolls, is due October 2, giving traders two more major data points before pricing in the central bank's next move.