Bitcoin recovers on jobless claims data despite higher-than-anticipated labor market figures. On Thursday, BTC traded at $64,350.14, shedding 1.01% in the 24-hour timeframe and then decreasing to $63,550 .
Nevertheless, it gained 0.62% on the hourly chart after the latest U.S. unemployment claims data release. Therefore, this suggested a sense of stabilization for the BTC price from recent volatility.
Why Bitcoin recovers on jobless claims today
Bitcoin witnessed consolidating price action since the U.S. Federal Reserve left interest rates unchanged on June 17. Moreover, officials maintained a hawkish stance. Consequently, this led to a decrease in risk appetite for traders.
However, initial jobless claims dropped to 226,000 for the week ended June 13, which met market expectations. Specifically, 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 because a robust labor market hints at slower monetary easing. Nevertheless, things were different this time.
Mixed signals support Bitcoin’s stability
Bitcoin marked a recovery as the latest report also had some indications of a gradual cooling in jobs conditions. For example, continuing claims (a measure of the number of Americans already receiving unemployment benefits) increased 24,000 to 1.81 million for the week ended June 6.
Moreover, the four-week moving average of continuing claims also rose to 1.788 million. Therefore, 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 data release. While lower initial jobless claims point to a solid economy, rising continuing claims could support expectations that the labor market is slowly cooling. Consequently, it might provide some space for the Fed to begin cutting rates in the future.
Additionally, oil prices are declining. Therefore, inflation pressures could dampen. If the PCE inflation comes in close to the Fed’s target of 3%, it could also boost hopes of a Fed rate cut.