[LIVE] Bitcoin Price Alert: U.S. Jobless Claims Crash to 191K: Will Strong Labor Data Kill Fed Rate Cuts?

U.S. initial jobless claims plunged to 191,000 for the week, crushing expectations of 219,000 and marking the lowest reading since September 2022.

Bitcoin showed little reaction to the surprise data, holding steady around $92,000 as traders digest what the strength means for Fed policy.

The 28,000-person beat signals the labor market isn’t in distress despite recent recession fears that drove crypto’s $1 trillion market cap loss in November, but the robust employment creates a critical dilemma, markets now face conflicting signals as December rate cut odds sit at 86%, yet strong jobless claims data typically reduces urgency for Fed easing at next week’s December 9-10 FOMC meeting.

The question traders are asking: does Fed Chair Powell view this as confirmation that the economy can handle higher rates for longer, or simply proof that October’s rate cut worked without breaking the labor market?

Initial claims at 191K represent a sharp drop from recent weeks and suggest hiring remains resilient despite government shutdown disruptions and slower payroll growth reported in September’s delayed jobs report.

For crypto, stronger economic data reduces recession risk but also dims the rate cut expectations that fueled Bitcoin’s recovery from last Monday’s $88,500 low.

The Fed ended quantitative tightening on December 1 and has signaled a dovish pivot, but hawkish policymakers could use today’s data to argue against December easing.

Bitcoin needs to break and hold above $100,000 to confirm bullish momentum, with resistance at the descending trendline that’s capped rallies since November 11.

The total crypto market cap sits at $3.2 trillion as the market weighs whether strong employment signals a bullish (no recession) or bearish (no rate cuts) outlook.

With the Fed’s blackout period starting imminently before next week’s meeting, today’s jobless claims print is one of the final data points policymakers will consider, and it argues against aggressive easing.

Support holds at $93,000, but if the Fed skips December’s cut, citing labor strength, Bitcoin could retest the $88,000-$90,000 zone that marked November’s capitulation low.

Jobless Claims Shock: Labor Market Shows Unexpected Strength

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