[LIVE] Bitcoin Price Update: First-Time Unemployment Claims Rise to 236K Compared to 220K Anticipated — Is Weak Labor a Signal for Rate Reductions?

Initial jobless claims rose to 236,000 compared to the anticipated 220,000, marking a notable increase from last week’s figure of 191,000, which was the lowest since September 2022.

Bitcoin fell from $92,000 to $90,000 yesterday, maintaining that level as traders evaluate whether the 45,000-person rise confirms worries about a weakening labor market or merely reflects the normalization of holiday volatility.

The timing is particularly crucial as yesterday’s Federal Reserve meeting featured Chair Powell announcing a hawkish 25-basis-point reduction and reducing the 2025 rate-cut forecasts from four to two, citing strong employment as the rationale.

Today’s weaker claims data directly contradict that narrative and may reignite discussions that the Fed is committing a policy misstep by hastily slowing the easing cycle.

The timing is essential as traders also process today’s OPEC Monthly Report and the U.S. 30-Year Bond Auction, both of which have implications for inflation expectations and Fed policy.

OPEC’s demand forecast could indicate whether energy prices will exert upward pressure on inflation in 2025, while the 30-year auction will show how bond markets are valuing long-term Fed policy following yesterday’s hawkish adjustment.

At present, Bitcoin’s technical configuration has weakened after the Fed’s decision, with critical support now at $88,000-$90,000 and resistance at $92,000. The total cryptocurrency market capitalization stands at $3.23 trillion as traders reevaluate whether today’s 236K jobless claims figure signifies the onset of labor-market decline that could compel the Fed to revert to a dovish stance.

The question remains whether a single week’s data can overturn Powell’s hawkish position—markets now confront a dilemma where weak employment could be interpreted as bullish (necessitating rate cuts) or bearish (indicating a recession).

With uncertainty surrounding the January 28-29 FOMC meeting regarding a potential rate cut, today’s labor market weakness offers support for dovish Fed officials who cautioned against pausing the easing too early.

Jobless Claims Spike: Labor Market Shows First Cracks

The post [LIVE] Bitcoin Price Watch: Initial Jobless Claims Jump to 236K vs 220K Expected — Does Weak Labor Support Rate Cuts? appeared first on Cryptonews.