Bitcoin drops on jobs data on Thursday. The latest US employment numbers came in stronger than expected.
Initial jobless claims were much lower than forecast. This raised hopes that the Fed will keep rates higher for longer.
Why Bitcoin drops on jobs data
BTC dipped to its lowest point at $64,986. It barely stayed above the $65,000 support level. At press time, Bitcoin traded at $65,005. That is down 1.02% in 24 hours.
The hourly chart already pointed downward before the data. After the report, the downtrend worsened. A string of long red candles pushed BTC lower. It fell below the $65,400 support area.
Bulls attempted a bounce near $65,060. Nevertheless, the recovery was restricted. This shows bears remain in control of the short-term trend.
If Bitcoin drops below $65,000, another leg down could follow. To regain strength, BTC needs to reclaim $65,400–$65,500. Analysts emphasize this as the first step.
The fall followed the latest US initial jobless claims release. Initial claims for the week ended July 18 dropped to 187,000. This is much lower than the forecast of 212,000.
Claims fell by 22,000 from the previous week’s revised 209,000. The four-week average fell to 207,500. Economic data suggests the US labor market remains robust. This is despite high interest rates.
Will latest jobs data impact FOMC decision?
The Fed has less reason to loosen policy when jobs are strong. A strong economy allows policymakers to keep rates high. Risk assets typically suffer from higher interest rates. This includes cryptocurrencies like Bitcoin.
Investors move into more secure, profitable avenues during such times.
Focus now turns to the July 28-29 FOMC meeting. CME FedWatch Tool data shows a 64.2% chance of holding rates steady. The range is 3.50%-3.75%.
Nevertheless, after the recent jobs data, markets now price in a 37.9% chance of a rate hike. This would be a 0.25% increase.
Bitcoin is now at an important technical level. The $65,000 support will be a focal point for traders. They are waiting for next week’s Fed meeting. A hawkish stance could bring further heat to BTC, per experts.