Bitcoin Volatility Rises After Jobless Claims Fall to 197,000
Bitcoin volatility increased after U.S. initial jobless claims fell to 197,000 for the week ending Sept. 26, below the 200,000 forecast.
U.S. initial jobless claims fell to 197,000 for the week ending Sept. 26, according to Labor Department data released Oct. 1. The figure was below the 200,000 consensus forecast and down from the previous week’s revised 198,000 reading.
The decline marked the fourth consecutive weekly drop in initial claims. The four-week moving average fell by 2,500 to 200,000. Continuing claims, reported for the week ending Sept. 19, fell by 11,000 to 1.701 million, the lowest level since March 2023.
The jobs data followed a 90,000 increase in private payrolls reported by ADP and a Chicago Purchasing Managers’ Index reading of 58.8. The figures came as traders assessed the outlook for Federal Reserve interest-rate policy and market liquidity.
Bitcoin rose to an intraday high of $84,421.99 after the claims report before falling to $83,181.61. The cryptocurrency traded at about $84,228.28 following the release.
Stronger employment data can reduce expectations for interest-rate cuts. Higher rates and Treasury yields can limit liquidity for riskier assets, including cryptocurrencies. The 10-year Treasury yield was near 5.15% after the data was released.
Bitcoin ended the third quarter up 44%. Its price has remained sensitive to economic data and leveraged trading, where rapid price changes can lead to liquidations in derivatives markets.
Bitcoin has traded between about $75,585 and $87,397. The cryptocurrency faced resistance near $85,000, while buying activity supported prices around $82,000. A stronger-than-expected nonfarm payrolls report could increase expectations for a tighter Federal Reserve policy and put pressure on Bitcoin near the $77,000 support area. A weaker report could improve expectations for a move toward the upper end of the October range near $88,900.
The next major U.S. labor-market release is the nonfarm payrolls report. A nine-day run of exchange-traded fund inflows ended with a reported $148.7 million net outflow. Citigroup raised its 12-month Bitcoin price target to $113,000.
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