Bitcoin Price Prediction as Weak U.S Jobs Data Spurs Rate Cut Hopes – Will BTC Surge?
Bitcoin (BTC) dipped slightly by 0.20%, settling at $63,000, yet maintains a bullish stance in the latest bitcoin price prediction. The rise in jobless claims to 231,000, the highest since August 2023, suggests a cooling U.S. labour market, prompting anticipatory actions by the Federal Reserve.
This could lead to rate reductions earlier than projected, influencing Bitcoin’s appeal as a non-traditional investment.
The Labor Department reported a notable increase in initial jobless claims for the week ending May 4, reaching 231,000—22,000 more than the previous week and well above the Dow Jones estimate of 214,000.
This marks the highest level since August 26, 2023, signalling possible economic strains and a cooling labour market that had previously shown resilience.
Continuing claims also increased, rising by 17,000 to 1.78 million, while the four-week moving average of claims climbed to 215,000. These figures suggest a gradual economic slowdown, prompting discussions about the Federal Reserve’s potential early rate cuts to stimulate growth.
Such a softening in the labour market has historically been a catalyst for Bitcoin price as investors turn to non-traditional assets.
April’s nonfarm payroll data added to these concerns, showing a gain of only 175,000 jobs, far below the expected 240,000. This was the smallest increase since October 2023. However, the unemployment rate remains stable at 3.9%, under 4% since February 2022, indicating that the job market is not in crisis but may be normalizing. Analysts Christopher Rupkey and Robert Frick have noted the volatility and surprising rise in jobless claims, suggesting potential further fluctuations in the labour market. Officials of the Federal Reserve, whose goal is to
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