Recent jobless claims data from the US indicates an increase in initial claims, which may influence economic forecasts and financial markets.
US Jobless Claims Figures
The US Department of Labor reported an increase in initial jobless claims by 11,000, bringing the total to 235,000 for the week ending August 16. This rise marks the highest increase in eight weeks and exceeds market expectations. "In the week ending August 16, the advance figure for seasonally adjusted initial claims was 235,000, an increase of 11,000 from the previous week's unrevised level of 224,000… This is the highest level for insured unemployment since November 6, 2021," stated the US Department of Labor.
Probabilities of Fed Rate Cuts
The probabilities surrounding a Federal Reserve rate cut have shifted notably, with CME's 'FedWatch' tool showing an 87.2% likelihood of a 25 basis point cut in September. Market analysts expect increased volatility in the cryptocurrency sector. However, there have been no direct remarks or assessments from notable individuals such as Jerome Powell. Attention remains focused on the upcoming Federal Reserve meetings on September 17 and October 29.
Impact on Bitcoin and Ethereum
Bitcoin (BTC) is trading at $113,078.68, reflecting a 1.71% increase over the past 24 hours. BTC's market capitalization stands at $2.25 trillion, while the fully diluted market capitalization is approximately $2.37 trillion. Despite fluctuations, BTC's 24-hour trading volume experienced a significant increase of 74.91%, reaching around $64 billion. Historically, BTC tends to rally on expectations of lower interest rates. Coincu's research team suggests that financial markets may continue anticipating Fed actions impacting dollar value and crypto assets.
The rise in jobless claims and analytical data on the potential Fed rate cut could have significant implications for financial markets and investors, particularly in the cryptocurrency space.
