On Thursday, we focused on the number of US unemployment claims to see if there are signs of a weakening job market.
This indicator is not the best at predicting the timing, but it often provides insights into the market and can particularly impact the cryptocurrency market with a focus on Bitcoin (BTC).
Weak US Employment Boosts Bitcoin Price
Bitcoin rose more than 2% immediately after the release of the initial US jobless claims, maintaining above $67,500. Bitcoin is currently trading at $67,688.
Read more: How to Buy Bitcoin (BTC) and Everything You Need to Know
This rise came after the US Bureau of Labor Statistics (BLS) reported that 227,000 jobless claims were filed last week. This is a slight decrease from the 241,000 in the week ending October 12 and slightly below the expected 242,000.
"The US job market continues to weaken. Indeed data shows job postings are down 27.4% year-over-year, hitting the lowest level since January 2021. Job postings have now declined for 2.5 consecutive years, down 45% from the February 2022 peak. As a result, job openings have returned to pre-pandemic February 2020 levels," noted Kobeissi Letter, a provider of global capital markets insights, in a tweet.
Meanwhile, economists expect job postings to continue declining over the next few months as the labor market continues to deteriorate. As reported by BeInCrypto, the US's sluggish job market has been triggered by several factors, including concerns about climate-related disasters.
"Initial jobless claims fell again after being distorted by Hurricane impacts in the week ending October 19. The labor market is gradually cooling, but there is no evidence yet of any wave of layoffs that could trigger a broader economic slowdown," said economist Gregory Daco in a tweet.
If the impact of the hurricanes persists, the US job market could deteriorate further if sufficient data emerges, as individuals must be unemployed for at least 3 weeks before applying for unemployment benefits. The US is currently 3.5 weeks past Hurricane Ian and 2.5 weeks past Hurricane Nicole.
The lack of infrastructure in some of the hardest-hit areas of Florida and North Carolina could delay new claims, and the unemployment figures could worsen further next week.
This could impact perceptions of the Federal Reserve's (Fed) interest rate plans, which aim to achieve price stability and maximum employment.
Read more: How to Protect Yourself from Inflation Using Cryptocurrency.
Therefore, as the US job market weakens, the Fed is more likely to continue rate cuts at its next meeting.
