The US initial jobless claims fell to 215,000, indicating labour market stability. Meanwhile, Fed Chair Jerome Powell remarked on the significant economic effects of recent tariffs, ensuring no imminent rate cuts. The ECB responded by lowering rates to 2.25%. Bitcoin is at a critical inflection point as it consolidates below $86,000, with analysts noting potential for changes in market momentum. Readers are advised to perform their own research before making investments.
On April 17, the US initial jobless claims reached 215,000, falling short of the projected 225,000, indicating stability in the US labour market. This reduction in claims suggests fewer individuals are facing job loss amid ongoing tariff uncertainties. Since initial jobless claims serve as a leading economic indicator, they significantly influence investor sentiment towards risk assets such as Bitcoin (BTC).
The resilience of the labour market aligns with Federal Reserve Chair Jerome Powell’s statements regarding tariff impacts. At a press conference on April 16, he acknowledged that current tariff increases are larger than expected, which could lead to higher inflation and slower growth in the economy. Powell confirmed the Fed’s decision against market bailouts or rate cuts, echoing earlier remarks made on April 4, 2025, highlighting a careful approach amid economic unpredictability.
In contrast, the European Central Bank (ECB) lowered interest rates from 2.50% to 2.25% to mitigate pressures arising from US trade tariffs. This decision marks the lowest borrowing costs since late 2022 and represents the seventh rate cut within a year, suggesting a response to economic challenges.
Despite this, the recent US jobless claims data leans bearish for risk assets, including Bitcoin. A robust labour market diminishes the likelihood of rate reductions, thus promoting speculative investments. Bitcoin has been stable but has struggled to surpass the $86,000 resistance level. Analyst Titan of Crypto identified Bitcoin as being at an ‘inflection point’.
In trading, an ‘inflection point’ is where market dynamics may undergo a significant change, indicating a potential reversal or surge in momentum. Titan highlighted that Bitcoin’s contraction within a triangular formation on the 1-hour chart is coming to a crucial decision point. The relative strength index (RSI) is positioned above 50, indicating an approaching breakout opportunity.
Order flow trader Magus noted that Bitcoin is trading within a narrow range of $83,700 to $85,200. Should BTC fail to exceed the $85,000 mark soon, long-term bearish risks may emerge, emphasising a crucial threshold for maintaining bullish momentum in the crypto market.
This article does not provide investment advice. It is essential for readers to conduct thorough research before making any trading decisions, as all investments carry inherent risks.
