Bitcoin Remains Steady at $90k as Jobless Claims Indicate Economic Cooling, Fed Official Advocates for Rate Cuts

Bitcoin has stabilized around the $90,000 mark as recent U.S. job market data reflects a cooling economy with modest jobless claims increases. Amid this backdrop, a leading Federal Reserve official is advocating for interest rate cuts, which could bolster the cryptocurrency market.

Key Takeaways

Bitcoin is trading near $90,464, slightly up from previous values.
Initial jobless claims rose modestly, indicating a resilient labor market.
U.S. employers have announced significant job cuts, particularly in tech and federal sectors.
A senior Federal Reserve official is pushing for interest rate cuts to stimulate labor growth.
Technical analysis suggests a bullish trend for Bitcoin with potential price targets exceeding $100,000.

Bitcoin holds $90k as jobless claims signal cooling as top Fed official pushes for rate cuts - 1

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Bitcoin has held steady near the $90,000 range as of Thursday, following the release of new U.S. labor data emphasizing a familiar trend for 2026: the economy is cooling with fewer layoffs and new hiring.

According to the Labor Department, initial jobless claims increased slightly in the first week of the year, with 208,000 Americans applying for unemployment benefits during the week ending January 3, compared to 200,000 the previous week. This number is lower than economists' predictions of 210,000, highlighting the labor market's resilience despite a slowdown in growth momentum.

At around the time of the labor data release, Bitcoin was trading at approximately $90,464, a 1.2% increase, although it temporarily dropped to its lowest point since January 3, around 5% below this week’s peak. The dip coincided with American investors offloading ETFs, as data indicated that spot Bitcoin ETFs experienced outflows of over $486 million on Wednesday, following a loss of more than $243 million the day before. Cumulatively, these ETFs have seen inflows of $57 billion, a decrease from the prior year’s high of over $65 billion, and they currently hold over $118 billion in assets, representing 6.5% of their market capitalization.

Jobless Claims Overview

Continuing claims, which track individuals receiving benefits beyond the initial week, rose to 1.91 million for the week ending December 27, a rise from 1.86 million. This suggests growing challenges for job seekers. Although holiday-related fluctuations have contributed to variability in these figures, the claims remain fairly low compared to the past year.

Other reports signal a more concerning outlook. Challenger, Gray & Christmas noted that U.S. employers announced a total of 1.206 million job cuts in 2025, marking a 58% increase from the previous year and the highest figure in five years, largely stemming from restructuring in federal agencies and technology companies focused on AI. Hiring plans also dropped by 34%, reaching the lowest level since 2010.

Job openings have decreased significantly, hitting a 14-month low in November, with only 0.91 job openings for every unemployed worker—the weakest ratio since March 2021. The upcoming nonfarm payrolls report is eagerly anticipated, with economists predicting job growth of around 73,000 and an unemployment rate of 4.5%. This report will be critical in assessing whether the labor market is stabilizing or is continuing to slip.

Comments from Federal Officials

Stephen Miran, a senior official from the Federal Reserve, continues to advocate for additional interest rate cuts this year. He hopes other officials will agree to a cumulative reduction of 150 basis points to help stimulate the labor market. Miran, appointed by former President Donald Trump, has established himself as one of the more dovish Fed officials, favoring 50-basis-point cuts at each of the three most recent meetings.

However, it remains uncertain whether Miran’s proposal for further cuts will gain traction, as many officials have been hesitant to implement such changes. The dot plot from the latest meeting indicates that officials anticipate delivering just one more cut this year.

If enacted, these proposed cuts would be favorable for Bitcoin as it typically thrives during periods of easy monetary policy. Additionally, the U.S. government is expected to deliver further economic stimulus, particularly through tax refunds. The average tax refund is projected to be about $3,167, an increase from $3,138 in 2024. Increased refunds, tax reductions, and a rising M2 money supply could benefit Bitcoin and other alternative cryptocurrencies.

Technical Analysis Indicates Potential for Growth

bitcoin price BTC price chart |Source: crypto.news

A 12-hour chart analysis suggests that Bitcoin's price has been on an upward trend over recent months, climbing from a low of $80,590 in November to a high of $94,516.

The chart reveals an ascending triangle pattern, with resistance at $94,516. This pattern indicates that the next significant price target is likely to be around $103,465, which represents the 50% Fibonacci Retracement level. This target stands about 15% higher than the current trading level, indicating a bullish outlook for Bitcoin's future pricing.