In the US, initial data for jobless claims on 17 April was 215,000. That’s below what had been expected of 225,000. Jobless claims dropped, indicating that US employment remained stable. Fewer people were affected by US Tariffs. Initial jobless claims is a leading indicator of US economic health and can influence investor sentiment towards risky assets such as Bitcoin. (BTC).
Powell’s comment on tariffs has prompted a resurgence in the labour market. Powell spoke at a Chicago economics society press conference on 16 April. said,
“The level of the tariff increases announced so far is significantly larger than anticipated. The same is likely to be true of the economic effects, which will include higher inflation and slower growth.”
Fed Reserve Chair stated the Fed does not plan to cut rates or intervene in market bailouts any time soon. The Fed Reserve Chair’s current stance is in line with comments he made on April 4, 2025 when he said that it would be impossible to implement rate cuts or bailouts. “too soon” Rate reductions are being considered by the Fed, reflecting its cautious approach in light of ongoing economic uncertainty.
The European Central Bank, however, cut its interest rate to 2.25 percent from 2.5 percent in an effort to counter the economic pressures caused by US tariffs. According to data, The ECB’s borrowing costs have fallen to their lowest levels since the end of 2022. This is the seventh rate reduction within a single year.
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Bitcoin still remains at its inflection points, according to analyst
The recent US data on jobless claims is bearish for risky assets such as Bitcoin in the short-term, because a robust labour market will reduce the chances of rate reductions, which would support speculative investment.
BTC has been consolidating in a narrow range for the last few days. It is unable to rise above $86,000. Titan of Crypto, an anonymous crypto-trader, said Bitcoin was at an all time high. “inflection point”.
A critical junction in the trading process is an inflection point. This can be a pivotal moment where the direction or momentum of the market may change dramatically. The balance between sellers and buyers reaches an inflection point. This can lead to either a trend reversal, or even acceleration. “The trader” said.
“Bitcoin Inflection Point. On the 1H chart, BTC is contracting within a triangle and is about to choose a direction. The RSI is above 50 and attempting to break its resistance. A move is brewing.”
Magus Order Flow Trader noted Bitcoin has been consolidating in the range of $83,700 to $85,200. BTC has to rise above $85,000 in order for bullish momentum continue. This is because the chart shows potential bearish risk if this price level isn’t reached.
Related: Bitcoin price levels to watch as Fed rate cut hopes fade
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Source: cointelegraph.com
