Bitcoin fell back below $80,000 after US jobless claims came in lower than expected, which could complicate the case for further Federal Reserve rate cuts. Spot Bitcoin ETFs took in net inflows on November 4, but a Democratic sweep in the midterms limited the recovery.
Bitcoin slipped below $80,000 after briefly trading above $80,500, as stronger-than-expected US jobless claims data raised questions about the Federal Reserve's next interest rate decision.
Bitcoin was trading around $79,356, up 1.3% over 24 hours, according to CoinGecko data cited by crypto.news. It had recovered from a drop toward $75,600 during the midterm election selloff.
Jobless claims fall to 189,000
Initial unemployment claims dropped by 6,000 to 189,000 in the week ending October 31, against expectations of 196,000. Weekly claims have stayed at or below 200,000 for eight consecutive weeks, according to the Associated Press.
The picture is mixed, however. Continuing claims rose by 23,000 to 1.718 million, according to Reuters.
A resilient labor market could give policymakers more room to keep borrowing costs elevated, which could weigh on risk assets including cryptocurrencies. The Fed kept its benchmark rate unchanged at 3.75% to 4% at its October meeting.
ETF flows and the midterms shape the move
US spot Bitcoin ETFs recorded $74.6 million in net inflows on November 4, ending three consecutive sessions of withdrawals. Fidelity's FBTC attracted $236.7 million, while BlackRock's IBIT recorded $201.2 million in outflows.
Politics added pressure. Investing.com reported that traders fretted over the regulatory outlook under a Democrat-controlled Congress, which has historically subjected crypto to more scrutiny. That notion limited Bitcoin's overall recovery.
Support and the October jobs report
The $79,000 to $79,500 region is the nearest area to watch, while a sustained move below it could expose $78,000. Buyers would need to reclaim $80,000 and then push through $80,500 to $80,800.
The October employment report is due November 6, with economists surveyed by FactSet expecting about 65,000 jobs added and unemployment holding at 4.2%.
Sources: crypto.news, Investing.com
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