US Jobless Claims Rise To 225K, Bitcoin Rebounds Above $63K

By Kritika Mehta — Bitcoin reclaimed the $63,000 mark on Thursday after a softer-than-expected U.S. jobs report gave risk assets a reason to exhale. The U.S. initial jobless claims climbed to 225,000, above Wall Street's 215,000 estimate, briefly reminding traders that the labor market is not, in fact, invincible.

Highlights:

• Bitcoin recovered above $63,000 after the U.S. jobs data release.
• Initial jobless claims rose to 225,000, higher than consensus estimates.
• A weaker labor market fueled hopes of future Fed rate cuts, lifting crypto sentiment.

Bitcoin registered a short-term rally on Thursday following the fresh U.S. labor market report. The higher-than-expected claims print eased some of the pressure on risk assets, which had spent the week getting tossed around.

US Jobless Claims Data Sparks Bitcoin Recovery

US initial jobless claims for the week ended May 30 jumped 13,000 to 225,000, according to the U.S. Department of Labor. That came in well above the 215,000 consensus estimate. Last week's figure was revised up to 212,000. Meanwhile, continuing claims for the week ended May 23 dropped 8,000 to 1.777 million.

Other labor data showed final labor costs rose 1.8% from the prior quarter, slightly below the 2.5% estimate, hinting that wage inflation pressures are cooling. Markets tend to read this as macro-friendly — crypto's preferred flavor of news.

Bitcoin regained more than 2% on the hourly chart following the data release. BTC was trading at $63,518 at press time on Thursday, June 4, though it remained down 4.95% over the prior 24 hours. Bitcoin's market cap stood at $1.27 billion, while trading volume surged to $64.91 billion over the past 24 hours.

Earlier in the day, Bitcoin had dipped to around $61,000 amid a wave of crypto market liquidations. The BTC market cap has shed over $200 billion since this week's bloodbath began — a number that, frankly, hurts to type.

How Does Recent US Jobs Data Impact Crypto?

The softer U.S. jobs data caught traders' attention, since a weaker labor market could give the Federal Reserve more room to lower rates in the future. Lower rates tend to make risk assets like Bitcoin more attractive by improving liquidity conditions. That said, some experts have flagged the possibility of 100 bps in Fed rate hikes amid rising oil and energy prices tied to the US-Iran conflict — a reminder that the macro picture has a sense of humor.

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