Crypto Markets Brace for Fed Policy as Jobless Claims Hit 57-Year Low

The Department of Labor report revealed that new unemployment benefit applications dropped by 6,000, falling well below the 200,000 threshold anticipated by economists. This labor market resilience arrives just before the Federal Reserve’s October 27-28 meeting, where policymakers are widely expected to maintain rates at 3.75% to 4.00%. While the central bank is unlikely to move this month, persistent inflation risks and global geopolitical instability have prompted analysts to price in a potential 25 basis point hike for December.

Bitcoin currently struggles to establish a firm foothold above $85,000, a level where heavy short liquidation liquidity resides. Technical indicators remain mixed, with the asset hovering near $84,200. Conversely, Ethereum faces institutional headwinds, evidenced by significant outflows from spot ETFs that have kept the price suppressed below $2,500. XRP mirrors this cautious sentiment, trapped beneath its 50-day moving average of $1.41. As borrowing costs remain a primary concern for speculative assets, traders are watching these key technical support levels to gauge whether institutional demand can overcome the tightening macroeconomic environment.