US Jobless Claims Hint at Stability as Bitcoin Reaches Inflection…

US jobless claims fell to 215,000, hinting at labor market stability. Fed Chair Powell warned of tariff impacts while maintaining a non-intervention stance. Bitcoin hovers near $85K, with analysts noting it’s at an inflection point, navigating tight price ranges and potential momentum shifts.

Initial jobless claims in the US have come in at 215,000, falling short of expectations set at 225,000 as of April 17. This slight dip suggests that the US labor market is showing some resilience, with fewer workers feeling the impact from the ongoing uncertainty around tariffs. Observers of the economic landscape see jobless claims as a leading indicator, closely tied to investor feeling about riskier assets like Bitcoin (BTC).

Federal Reserve Chair Jerome Powell recently added to the mixed economic picture during a press conference on April 16, expressing concerns over tariffs. He remarked, “The level of the tariff increases announced so far is significantly larger than anticipated. The same is likely to be true of the economic effects, which will include higher inflation and slower growth.” Powell made it clear that there’s no immediate plan for rate cuts or market bailouts from the Fed, aligning with his April 4 comments about the economy being too shaky for reductions.

In contrast, the European Central Bank has taken a more aggressive approach, cutting interest rates from 2.50% to 2.25% to help stave off economic pressures related to US tariffs. This move brings borrowing costs to the lowest level since late 2022, marking the seventh rate cut undertaken in a year.

As for Bitcoin, recent data on US jobless claims isn’t the best news. It gives a bearish hint for risk assets in the near term. With a resilient labor market, the possibility of rate cuts is dwindling, which has implications for speculative investments like BTC. Recently, Bitcoin has been unable to break through the $86,000 level, consolidating instead in a narrow range.

Anonymous trader Titan of Crypto claims Bitcoin is hitting an “inflection point”. An inflection point in trading indicates a pivotal moment when the market’s momentum could swing either way. They described the situation by saying, “Bitcoin Inflection Point. On the 1H chart, BTC is contracting within a triangle and is about to choose a direction. The RSI is above 50 and attempting to break its resistance. A move is brewing.”

Another trader, known by the name Magus, highlighted that Bitcoin is currently locked between $83,700 and $85,200. For BTC to keep its bullish vibe, it really needs to surge past the $85,000 mark sooner rather than later. If it can’t manage that, the longer-term charts may reveal bearish signals looming ahead.

To sum it all up, the current economic landscape is complex. While jobless claims shine a light on a stable labor market, the implications for Bitcoin seem a bit cloudier. Traders’ attention now focuses on pivotal levels, making this a critical time for anyone following these trends closely. Readers are reminded that this article isn’t financial advice. As trading always carries risk, it’s wise for individuals to do their own research before diving into the market.

In summary, the recent US jobless claims reveal a steady labor market, with initial figures coming in lower than anticipated. Meanwhile, Powell’s comments on tariffs and the Fed’s lack of intervention set a cautious tone for economic prospects. Bitcoin finds itself at a crucial moment, with many traders eyeing tight price levels and anticipating potential shifts, making this an interesting time for both the labor market and cryptocurrency investors.

Original Source: cointelegraph.com