Bitcoin (BTC) Price Eyes $68,000 Amid Weakening US Jobs Market

All eyes were on the US jobless claims on Thursday to see if there are any signs of weakness starting to creep into the job market.

While this lagging indicator is not the best at timing, it often gives some perspective and has the potential to move the crypto markets, with a special focus on Bitcoin (BTC).

Bitcoin Price Shows Strength On Weak US Jobs Data

Bitcoin is up by a modest 2%, holding well above the $67,500 threshold in the immediate aftermath of the US initial jobless claims. BeInCrypto data shows BTC is trading for $67,688 as of this writing.

Read More: How To Buy Bitcoin (BTC) and Everything You Need To Know

BTC Price Performance. Source: BeInCrypto

The surge comes after the Bureau of Labor Statistics (BLS) reported that the US recorded 227,000 unemployment claims last week. This marks a meager decrease from the 241,000 recorded in the week ending October 12. While it falls slightly lower than the expected 242,000, the data still points to a weakening jobs market in the US.

“The US labor market continues to weaken: Job postings have declined 27.4% year-over-year to their lowest since January 2021, according to Indeed data. Job postings have declined for 2.5 years straight and are now down 45% since the February 2022 peak. As a result, job vacancies reached their pre-pandemic levels seen in February 2020,” global capital markets insights provider Kobeissi Letter noted.

Meanwhile, economists suggest that job openings could continue falling in the coming months as the labor market continues to deteriorate. As BeInCrypto reported, the lackluster job market in the US is fueled, among other reasons, by concerns about climate-related catastrophes.

“Initial unemployment claims fell back in the week-ended Oct 19 after hurricane distortions. Labor market cooling gently, but no evidence of any layoffs wave that could precipitate broader slowdown,” economist Gregory Daco said.

If the effects of the hurricane continue, the jobs market in the US may deteriorate further if numbers are enough to go by. This is because workers need to be unemployed for at least three weeks before filing for unemployment benefits. Until now, the US is three and a half weeks from Hurricane Helene and two and a half weeks from the Milton hurricane.

The lack of infrastructure in some of the hardest-hit areas in Florida and North Carolina may have created some lag in new filings, positioning next week for even worse unemployment numbers.

This could affect sentiment toward the Federal Reserve’s (Fed) rate plan, which has a dual mandate to achieve price stability and maximum employment.

Read more: How to Protect Yourself From Inflation Using Cryptocurrency.

Therefore, given the weakening jobs market in the US, the Fed is more inclined to continue cutting interest rates at the next meeting.

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