US Labor Market Data Sparks Turmoil in Crypto Markets as Bitcoin Falters
The US labor market data released on Thursday sent shockwaves through the crypto markets as Bitcoin struggled to maintain its footing. The latest figures from the Department of Labor showed that initial jobless claims plummeted by 10,000 to 196,000 in the week ending September 12.
This significant drop was below the forecast of 207,000 and even lower than the previous week's 206,000. The 4-week moving average also decreased to 203,250, further solidifying the hawkish tone for the Federal Reserve.
The strong labor data raises concerns that the Fed may not ease its interest rate policy anytime soon, which could weigh on risk assets like Bitcoin. Goldman Sachs has already adjusted its forecast, predicting another 25-basis-point rate hike this year.
Bitcoin initially rallied 1.25% to $76,800 after the release of the jobs figures but quickly turned around, hovering around $76,051 at press time. Technical analysts are closely watching resistance levels, with some pointing to potential support and resistance zones in the current price range.