Bitcoin slipped almost 3% toward $63,000 after U.S. labor market data exceeded expectations, reinforcing the Federal Reserve’s hawkish stance and dampening hopes for imminent rate cuts.
Labor Market Indicators
The U.S. Department of Labor reported that initial jobless claims dropped to 226,000 for the week ending June 13, revising down from the previous week’s 230,000. Meanwhile, continuing claims rose to 1.81 million, hinting at underlying weakness but not enough to offset the headline decline.
Federal Reserve Outlook
On June 17, the Federal Reserve kept its benchmark rate unchanged at 3.50%–3.75% during the fourth consecutive pause, while signaling possible further tightening as late as 2026. Investors interpreted the pause and forward‑looking tone as a cue to reduce exposure to riskier assets, including crypto.
Crypto Market Reaction
Bitcoin fell below the $64,000 barrier as leveraged long positions were liquidated on major exchanges, and sellers targeted lower liquidity zones on the four‑hour chart. Oil prices retreated sharply after news of a U.S.–Iran framework, but the decline failed to revive crypto investors who remain focused on the Fed’s projections and the resilience of the U.S. labor market.