Breaking: U.S. Jobless Claims Come In Above Expectations; Bitcoin Unchanged

U.S. weekly jobless claims came in above estimates, just a day after the Fed said the labor market was stabilizing. Bitcoin remained largely unchanged following the release of this data, with the flagship crypto down on the day.

U.S. Jobless Claims Come In At 209,000, Bitcoin Down

Department of Labor data show that jobless claims for the week ending January 24 were 209,000, a decrease of 1,000 from the previous week’s revised level. However, this figure is above the estimates of 205,000.

Meanwhile, the agency revealed that the previous week’s level was revised up by 10,000 from 200,000 to 210,000. This development comes just a day after the Fed held rates steady, noting that the labor market looks to be stabilizing while inflation remains somewhat elevated. Fed chair Jerome Powell had also stated that more rate cuts will depend on whether the labor market softens again.

The recent initial jobless claims data suggest that the labor market may be stabilizing, which could further delay rate cuts. Crypto traders are currently betting on the Fed holding rates steady until the June FOMC meeting, when the new Fed chair will take office.

The Bitcoin price remained largely unchanged following the release of the macro data. TradingView data shows that the flagship crypto is trading just below the psychological $88,000 level, down about 1.50% from an intraday high above $89,000.

Bitcoin climbed to as high as $90,000 yesterday, just ahead of the FOMC meeting, but has since lost those gains as the Fed shows no rush to deliver further rate cuts. BTC’s weakness comes amid the rise in stocks and commodities, with the S&P 500, gold, and silver reaching new highs. The flagship crypto is also failing to rally despite the dollar weakness. JPMorgan analysts stated that this decline is due to short-term capital flows and market sentiment, rather than any shift in growth or monetary policy expectations.