Bitcoin Approaches $90K as Jobless Claims Deliver Surprise
According to the latest data provided by the Department of Labor, initial jobless claims fell to 199,000. This is a rather notable drop, given analysts had predicted the figure would stay above 200,000.This shows that the economy is likely more robust than it is generally believed. That said, analysts often caution that data around the end of December can be "noisy" due to seasonal hiring and other factors.Is good news bad news? Classically, a drop in jobless claims to 199,000 is a sign of a robust economy. For risk assets of the likes of Bitcoin, however, this could be a problem. If the labor market is too strong, the Federal Reserve has less pressure to cut interest rates aggressively in early 2026 to save the economy.The strong labor data is likely dampening the speculative frenzy. The Federal Reserve has two main goals: fight inflation and keep people employed. Investors were betting on the Fed cutting interest rates soon. However, the most recent data kills that hope. The Fed cannot justify cutting rates if the labor market remains in such a strong shape.