Bitcoin fell on Thursday, retreating from the $65,000 level that had been acting as resistance. The trigger: a drop in US initial jobless claims, which reinforced expectations that the Federal Reserve will keep interest rates higher for longer. That's a headwind for risk assets like crypto, and bitcoin responded by sliding.
Why the jobs data hit crypto
New claims for unemployment benefits declined last week, a sign the labor market remains tight. For traders, that's a reason to think the Fed won't cut rates anytime soon. Higher rates make holding riskier assets like bitcoin less attractive compared with yield-bearing instruments. The market's reaction was swift: bitcoin reversed course after touching the $65,000 mark earlier in the session.
The data arrives at a delicate moment. Crypto has been trading in a range, and any macro signal can push it one way or the other. Thursday's move was a reminder that the Fed's path remains the dominant factor for digital assets.
The rejection at $65,000
That round number has been a stubborn ceiling for bitcoin over the past few days. Thursday's attempt to break through failed, and the price slid back. Technical traders often watch these levels for signs of support or resistance. With the jobs data pointing to a resilient economy, the selling pressure didn't take long to build.
Bitcoin isn't alone. Other cryptocurrencies also felt the heat, though the moves were modest. The broader market is watching to see if the $65,000 level holds as support or becomes a launching pad for another test.
What traders are watching
The focus now shifts to the Federal Reserve's next policy meeting. If upcoming data continues to show strength, rate hike expectations could firm up further. That would likely keep a lid on crypto prices. Conversely, any sign of a cooling labor market could give bitcoin room to push higher.
For now, the $65,000 level remains the line in the sand. Whether bitcoin can reclaim it depends on how the next round of economic data lands. Thursday's decline was a reminder that in this market, the macro calendar matters more than anything else.
