Resilient Jobs Market Sinks Bitcoin Below $64,000

A strong labor market in the US has sent shockwaves through the cryptocurrency market, with Bitcoin (BTC) sliding below $64,000 after initial jobless claims fell by 4,000 to 226,000 for the week ending June 13.

The unemployment rate remained at 4.3% for a third straight month, and layoffs are in the historically low range they've held for most of the post-pandemic era. However, these numbers are seen as bad news for Bitcoin, which has been trading as a liquidity-sensitive instrument that responds to the expected path of interest rates.

The Federal Reserve's (Fed) decision to keep policy tight is a major factor in Bitcoin's price action, with strong labor data lowering the perceived odds of rate cuts and keeping real yields elevated. This, in turn, supports the dollar and reduces the appetite for speculative and longer-duration risk, including Bitcoin.

The Fed confirmed this expectation on June 17, when it held its benchmark rate at 3.50% to 3.75% and delivered a hawkish surprise in its projections. The median dot for the end of 2026 climbed to 3.8% from 3.4%, flipping the committee's base case from a cut to a hike.