The latest economic data showing a sharp drop in initial jobless claims has sparked concerns about rising inflation. However, Bitcoin, Ether, and other risk markets have remained relatively unaffected, shrugging off the strength of the jobs market. Despite the tight labor markets and unexpectedly strong quarterly economic growth, the crypto markets have maintained stability.
Bitcoin has experienced a modest increase, trading at around $30,500, reflecting a 1% gain over the past 24 hours. Similarly, Ether and most other major cryptocurrencies have remained slightly positive. While inflationary worries have weighed on investors, raising concerns of potential interest rate hikes, the current economic data serves as a validation of the Federal Open Market Committee’s (FOMC) previous statements.
The U.S. economy exceeded expectations, expanding by 2% in the first quarter, while initial jobless claims for the week ending June 24 dropped by 26,000 to 239,000, marking the largest decline since October 2021. These figures offer support for the FOMC to potentially resume its monetary tightening next month. The committee recently increased its peak 2023 interest rate projection, signaling the likelihood of two more rate hikes this year.
Although initial jobless claims were lower than anticipated, the four-week average remains slightly above consensus forecasts. These moving averages help smooth out fluctuations in individual observations and suggest a gradual easing in labor markets, aligning with the FOMC’s objectives.
Interestingly, risk markets, including the Dow Jones Industrial Average (DJIA), Nasdaq Composite, and S&P 500, have also demonstrated resilience, trading slightly higher on Thursday. Bitcoin has established a sideways trading pattern, finding support above the $30,000 mark. Notably, BTC’s Visible Range Volume Profile reveals a significant price agreement near $30,000, indicating strong support. Meanwhile, Ether has shown a similar flat trading pattern, encountering resistance around $1,900, potentially indicating a greater institutional focus on Bitcoin.
As economic data continues to unfold, the stability exhibited by Bitcoin, Ether, and other risk markets suggests confidence in their resilience, regardless of inflationary concerns. Investors will closely monitor further developments in the economy and central bank actions to gauge potential market reactions in the coming weeks.