The latest US initial jobless claims data came at 215,000, below the estimated expectation of 225,000, on April 17. The dip in jobless claims indicated that the US labor market remained stable, with fewer people being affected by the uncertainty of US tariffs. Initial jobless claims are a leading economic indicator that measures the health of the US economy and it often impacts investor sentiment around risk assets like Bitcoin (BTC). US jobless claims data. Source: Investing.com

Resiliency in the labor market comes on the back of Federal Reserve Chair Jerome Powell’s recent comment about the impact of tariffs. In a press conference at the economics club of Chicago on April 16, Powell said,

“The level of the tariff increases announced so far is significantly larger than anticipated. The same is likely to be true of the economic effects, which will include higher inflation and slower growth.”

The Fed Reserve Chair also stated that the Fed has no plans to intervene with market bailouts or implement rate cuts in the near future. This stance aligns with his earlier comments from April 4, 2025, when he noted it was “too soon” to consider rate reductions, reflecting the Fed’s cautious approach amid ongoing economic uncertainty.

However, the European Central Bank cut interest rates to 2.25% from 2.50% in order to combat economic pressure from US trade tariffs. According to data, the ECB has taken borrowing costs to its lowest level since late 2022, with the current rate cut marking its seventh reduction in a span of a year.

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Bitcoin remains at an inflection point, says analyst

For risk assets like Bitcoin, the recent US jobless claims data leans bearish in the short term, as a strong labour market reduces the likelihood of rate cuts, which supports speculative investments.

BTC prices have consolidated in a tight range over the past few days, failing to break above the $86,000 level. In light of that, anonymous crypto trader Titan of Crypto said that Bitcoin is at an “inflection point”.

Bitcoin analysis by Titan of Crypto. Source: X.com

An inflection point in trading is a critical juncture where the market’s direction or momentum may shift significantly. It’s a moment where the balance between buyers and sellers reaches a tipping point, often leading to a reversal or acceleration in the trend. The trader said,

“Bitcoin Inflection Point. On the 1H chart, BTC 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.”

Order flow trader Magus noted that Bitcoin is consolidating between $83,700 and $85,200. For the bullish momentum to persist, BTC must break above $85,000 soon, as the long-term chart signals potential bearish risks if this level isn’t surpassed.

Related: Bitcoin price levels to watch as Fed rate cut hopes fade

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.