Bitcoin Balances on a Knife-Edge at $85K as US Job Data Shifts Market Sentiment
Stronger-than-expected jobless claims stall hopes for Fed rate cuts, leaving Bitcoin at a critical price threshold
Bitcoin (BTC) continues to hover around $85,000, a level analysts now describe as a critical “inflection point”. Although the cryptocurrency remains resilient, a recent release of U.S. jobless claims data suggests that a stronger labor market may delay the kind of monetary policy changes that typically support risk assets like Bitcoin.
US Jobless Claims Suggest Labor Market Stability
On April 17, initial jobless claims came in at 215,000, outperforming economists’ estimates of 225,000. The dip indicates a stable U.S. labor market, even amid rising concerns over trade tariffs and inflation.
“This is a classic case of good news being bad news for crypto,” said one analyst, referencing how a strong jobs report can delay interest rate cuts.
Federal Reserve Chair Jerome Powell addressed the impact of tariffs the previous day at the Economics Club of Chicago. His words were cautious but clear:
“The level of the tariff increases announced so far is significantly larger than anticipated… The effects will include higher inflation and slower growth.”
However, Powell firmly rejected the idea of imminent bailouts or rate reductions, stating it’s “too soon” to consider such interventions—a position he reiterated from earlier in the month.
Bitcoin Faces an Inflection Point as Momentum Slows
While U.S. monetary policy remains on pause, the European Central Bank (ECB) has taken a different approach. It recently cut interest rates from 2.50% to 2.25%, marking the seventh reduction in one year—a response to mounting economic pressure from U.S. trade actions.
This transatlantic divergence in policy has left Bitcoin at a pivotal moment. BTC prices are consolidating between $83,700 and $85,200, unable to break resistance at $86,000. According to Titan of Crypto, an anonymous analyst:
“Bitcoin is contracting within a triangle and is about to choose a direction. The RSI is above 50 and attempting to break its resistance. A move is brewing.”
Inflection points in trading often signal upcoming volatility. The current tight price range could either set the stage for a breakout above $85,000 or open the door for a retracement if bulls fail to reclaim momentum.
Order flow trader Magus echoed the caution:
“For the bullish momentum to persist, BTC must break above $85K soon.”
The Road Ahead: Will Bitcoin Break Through or Break Down?
With macroeconomic indicators sending mixed signals, Bitcoin’s immediate future remains uncertain. A decisive move above $85,000 would help restore confidence in the rally—but without broader monetary support, Bitcoin bulls may have to fight harder for higher ground.
Share This
