Bitcoin deepened its retreat toward $76,320 on Thursday, relinquishing earlier gains after robust United States labor data fueled concerns that the Federal Reserve will hold interest rates higher for longer. The digital asset, which had briefly climbed above the psychological $80,500 threshold earlier in the session, wiped out its recovery from recent post-election volatility and is now drifting back toward its previous swing lows around $75,600.
The downturn followed government data revealing initial jobless claims fell by 6,000 to 189,000 for the week ending October 31, significantly outperforming consensus forecasts of 196,000. Matching the lowest level recorded since 1969, the print marked the eighth consecutive week of claims remaining at or below 200,000. While continuing claims crept up to 1.718 million—indicating prolonged searches for displaced workers—the headline numbers reinforced that American employers remain broadly reluctant to cut payrolls.
For crypto investors, persistent labor market resilience poses a fresh headwind. A strong employment backdrop provides policymakers ample leeway to keep borrowing costs elevated while managing inflation risks, directly undermining market expectations for imminent monetary easing. With the Fed having held its benchmark rate at 3.75% to 4% in October, traders have grown wary that fewer rate cuts over the coming months will continue to starve speculative assets of fresh liquidity.
