BREAKING: US Initial Jobless Claims Rise To 225K, Bitcoin Rebounds
Highlights
- Bitcoin recovered above the $63,000 level today after the U.S. jobs data release.
- The U.S. initial jobless claims rose to 225,000, higher than Wall Street estimates.
- A weaker labor market could hint at Fed rate cuts, which boosted optimism in the crypto market.
Bitcoin registered a short-term rally on Thursday after a fresh U.S. labor market report. The US initial jobless claims came in higher than consensus estimate, which helped to relieve some of the pressure on risk assets.
US Jobless Claims Data Sparks Bitcoin Recovery
US initial jobless claims for the week ended May 30 jumped 13,000 to 225,000, according to the U.S. Department of Labor. It marked a level much higher than the 215,000 estimate from market expectations.
Last week’s figure was revised up to 212,000. Meanwhile, new claims for the week ended May 23 dropped 8,000 to 1.777 million. Other labor data indicated final labour costs increased 1.8% from the prior quarter, slightly lower than the estimate of 2.5%, indicating a slowing in wage inflation pressures.
Bitcoin regained momentum with over 2% on the hourly chart since the US initial jobless claims data release. The BTC price was trading at $63,518 at press time on Thursday, June 4. However, it was still down 4.95% over the last 24 hours.
Meanwhile, the total capitalization of Bitcoin stood at $1.27 billion. Further, the trading volume soared rapidly to $64.91 billion in the previous 24 hours.
Earlier, in the day, Bitcoin crashed to around $61,000 amid massive crypto market liquidations. The BTC market cap has erased over $200 billion in value since the bloodbath started this week.
How Does Recent US Jobs Data Impact Crypto?
The US initial jobless claims data attracted traders’ attention as it was perceived weak. The weaker U.S. jobs data could boost expectations that the Federal Reserve could still have more space to move rates lower in the future.
A drop in interest rates makes risk assets like Bitcoin more attractive, which often boosts the liquidity conditions. Nonetheless, experts have hinted at Fed rate hikes of 100 bps owing to rising oil and energy prices amid the US-Iran war.
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