Breaking: Bitcoin Risks Fall Below $65K As US Initial Jobless Claims Drop Massively

Bitcoin fell hard on Thursday following stronger-than-expected U.S. employment data. The latest U.S. initial jobless claims came in lower than forecast, which raised hopes that the Federal Reserve would maintain a higher interest rate for longer.

Bitcoin Nears $65K Breakdown Amid Latest U.S. Jobs Dat

The BTC price dipped to its lowest point of the day at $65,059.59, barely above the $65,000 support level. At press time on July 23, Bitcoin traded at $65,108.24, down 1.02% in the 24-hour timeframe.

For further context, the hourly chart had already been pointing to a downward trend even before the economic data. After the report, the downtrend exacerbated.

A string of long red candles pushed Bitcoin down below the $65,400 support area. Moreover, bulls seem to have attempted a bounce near $65,060, but it did not work out but, the recovery was restricted.

That implies that bears are still in control of the short term trend. If Bitcoin drops below $65,000, it could see another leg down. To get back $65,400 – $65,500 will be the first step to strength, analysts say.

The fall was after the most recent U.S. initial jobless claims release. Initial claims for the week ended July 18 dropped to 187,000, the U.S. Department of Labor reported. Further, it is much lower than the Wall Street forecast of 212,000 claims.

The claims for the week also fell by 22,000, from the revised 209,000 of the previous week. The four-week average fell to 207,500. Economic data suggested that the U.S. labor market remained robust in spite of high interest rates.

Will Latest U.S. Initial Jobless Claims Data Impact FOMC Decision?

For context, the Fed will have less reason to loosen monetary policy when the job market is strong. If the economy is strong, policymakers can afford to keep selling rates high. Risk assets are typically negatively affected by higher interest rates. That includes cryptocurrencies such as Bitcoin, with investors moving into more secure, profitable avenues.

The focus now is on the July 28-29 FOMC meeting. According to the CME FedWatch Tool data, the chances of Fed holding its benchmark rate at 3.50%-3.75% are 62.1%. However, after the recent jobs data, the market now prices on a 37.9% chance that the Fed rate will be raised by 0.25%.

Meanwhile, the Bitcoin price is now at an important technical level, according to crypto tools data. The $65,000 support will be a focal point for traders as they wait for next week’s Fed meeting. In case of a hawkish stance, BTC could face further heat, per experts.