Key Takeaways:
Bitcoin (BTC) slid toward $80,000 on Thursday after US jobless claims data showed a persistently strong labor market, reinforcing the case for the Federal Reserve to maintain higher interest rates for longer.
Initial applications for unemployment benefits rose by 10,000 to 200,000 in the week ended May 2, according to the Labor Department, slightly below the median economist forecast of 205,000.
The resilient employment figures, coupled with a drop in continuing claims to a two-year low of 1.77 million, suggest the labor market remains tight. This economic strength gives the Fed less incentive to cut interest rates, a move that would typically weaken the dollar and benefit assets like Bitcoin. The 10-year Treasury yield rose to nearly 4.40%, reflecting the recalibration of rate-cut expectations.
The market is now looking ahead to the April jobs report for further direction. Continued labor market strength could see Bitcoin test lower support levels as the "easy money" narrative that fueled earlier gains continues to fade. As of 18:00 UTC, Bitcoin was trading at approximately $80,100, down from overnight highs around $81,700, according to CoinGecko data.
This article is for informational purposes only and does not constitute investment advice.
