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Bitcoin has fallen nearly 3% toward $63,000 after stronger-than-expected U.S. labor market data reinforced the Federal Reserve’s hawkish outlook and reduced expectations for short-term rate cuts.
According to U.S. Department of Labor data, initial jobless claims fell to 226,000 for the week ended June 13, down from a revised 230,000 in the prior week.
The report arrived one day after the Federal Reserve held rates steady at 3.50%-3.75% during its June 17 FOMC meeting, marking a fourth consecutive pause while policymakers projected the possibility of additional tightening in 2026. The outlook prompted traders to reduce exposure to risk assets.
Oil markets have offered little support despite crude prices retreating sharply following reports of progress toward a U.S.-Iran framework agreement. While lower energy prices could ease inflation concerns, traders remain focused on the Fed’s latest projections and the resilience of the U.S. labor market.
Derivatives markets also turned defensive. Bitcoin ($BTC) slid below $64,000 as leveraged long positions were flushed out across major exchanges, while traders reassessed the likelihood of near-term rate cuts. At the same time, continuing unemployment claims rose to 1.81 million, a detail that offered some evidence of labor market weakness but failed to offset the market’s reaction to lower headline jobless claims.
The four-hour chart shows Bitcoin breaking below the lower boundary of an ascending channel that had guided price action higher since the June 5 rebound from near $59,000. The breakdown occurred just below the 61.8% Fibonacci retracement level near $64,950, a zone that previously acted as support during the recent recovery attempt.The next major support sits near the 78.6% Fibonacci retracement level around $62,400. A daily close below that area could expose the June low near
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