Breaking: Bitcoin Rebounds Despite US Jobless Claims Falling To 226K

Bitcoin recovered slightly on Thursday, despite the U.S. labor market data coming in higher than anticipated. The market seems to be weighing the U.S. jobs data signals and the Federal Reserve’s hawkish policy stance.

Bitcoin Recovers Amid Drop In US Initial Jobless Claims

At press time, Bitcoin traded at $64,350.14, shedding 1.01% in the 24-hour timeframe. However, it gained 0.62% on the hourly chart after the latest U.S. unemployment claims data release. This suggested a sense of stabilization for the BTC price from the recent volatility.

For context, Bitcoin witnessed a consolidating price action since the U.S. Federal Reserve on June 17 left interest rates unchanged. Moreover, officials maintained a hawkish stance, which led to a decrease in risk appetite for traders.

Meanwhile, initial jobless claims dropped to 226,000 for the week ended June 13, which met market expectations. It was down 4,000 from the revised figure of 230,000 jobless claims a week ago, according to fresh data from the U.S. Department of Labor.

Previously, economists expected that claims were going to keep rising. Hence, the decline in jobless claims is seen as a sign that layoffs remain relatively limited across the economy. During stronger-than-anticipated jobs data, Bitcoin generally falls as a robust labor market hints at slower monetary easing. However, things were different this time.

Why Did BTC Rebound Despite Strong Jobs Data?

Bitcoin marked a recovery as the latest report also had some indications of a gradual cooling in jobs conditions. Continuing claims, a measure of the number of Americans already getting unemployment benefits, increased 24,000 to 1.81 million the week ended June 6.

Moreover, the four week moving average of continuing claims also rose to 1.788 million. This indicates that unemployed citizens are taking a longer time to find new jobs.

The mixed labor market backdrop supports Bitcoin’s stability after the release of the data. While lower initial jobless claims point to a solid economy, rising continuing claims could support expectations that the labor market is slowly cooling. It might provide some space for the Fed to begin cutting rates in the future.

Also, since the oil prices are declining, the inflation pressures could dampen. If the PCE inflation comes in close to Fed’s target of 3%, it could also boost hopes of a Fed rate cut.

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