Bitcoin slid toward its $65,000 support after U.S. jobless claims came in far below forecasts, reviving bets that the Federal Reserve will keep rates high. Traders now look to next week’s FOMC meeting, where a hawkish stance could pressure the token further.
Bitcoin dropped to an intraday low of $65,059.59 on Thursday, barely holding the $65,000 mark, after U.S. jobless claims undershot expectations and lifted the odds of higher-for-longer rates. The token traded at $65,108.24, down 1.02% over 24 hours by press time on July 23.
A string of long red candles had already pushed the price below the $65,400 area, and an attempted bounce near $65,060 failed to hold. Bears remain in control of the short-term trend, and reclaiming $65,400-$65,500 is the first step toward strength, analysts say.
Jobless claims undercut easing hopes
The sell-off tracked the latest labor report. Initial claims for the week ended July 18 dropped to 187,000, the U.S. Department of Labor reported — well under the Wall Street forecast of 212,000. Claims fell by 22,000 from the revised 209,000 of the prior week, and the four-week average slipped to 207,500.
A resilient labor market gives the Fed less reason to loosen policy. Higher interest rates typically weigh on risk assets such as Bitcoin, pushing investors toward safer options.
Focus shifts to next week’s FOMC
According to the CME FedWatch Tool, the odds of the Fed holding its benchmark at 3.50%-3.75% stand at 62.1%, while markets now price a 37.9% chance of a 0.25% increase after the jobs data. The meeting on July 28-29 is the next catalyst, and a hawkish stance could pressure BTC further.
Rally faces doubts
The drop interrupts a partial recovery. Bitcoin had rebounded from below $58,000 at the end of June, briefly reaching nearly $67,000 before easing. Spot BTC ETF inflows have outpaced outflows for seven consecutive days, a shift from June, when the funds shed around $1.8 billion in a single week.
Still, some analysts are cautious. The analyst known as BATMAN likened the move to a 2022 pump that preceded a steep decline, warning: “History might not repeat itself, but it sure does rhyme.” Grayscale data suggests that if the four-year cycle repeats, the bear market could run into September or October.
For now, $65,000 is the support level traders are watching into the Fed decision.
Sources: CoinGape, CryptoPotato, AMBCrypto
Trading involves risk.
Risk Disclaimer
