U.S. jobless claims surged to a four-year high on September 11, 2025, overshadowing inflation data and renewing recession fears at the financial and crypto market level.
Increased labor market weakness signals potential stagflation concerns, impacting Bitcoin and altcoins, while bolstering expectations of a Federal Reserve interest rate cut.
Rising U.S. jobless claims reached a four-year high, which overshadowed inflation data. This sparked renewed concerns about potential recession and stagflation. These figures primarily originate from the U.S. Department of Labor reports.
The U.S. Department of Labor issued data indicating a significant rise in jobless claims. The U.S. Federal Reserve and the CME Group play critical roles in market expectations, particularly for monetary policy adjustments based on labor and inflation statistics.
Bitcoin Dips 0.5% Amid Market Reactions
The jobless claims affected the financial markets, leading to Bitcoin dipping approximately 0.5%. Altcoins like Solana, XRP, and Dogecoin saw rebounds. The U.S. Dollar Index also declined, historically correlating with crypto price strengthening.
The CME Group reported increased expectations for a Federal Reserve rate cut following the jobless claims. Traders and investors anticipate adjustments in monetary policy, as indicated by the FedWatch Tool. Historical trends suggest possible rate changes to influence the crypto market.
Historical Precedents: October 2021 and December 2020
Similar increases in jobless claims have occurred before, most notably in October 2021 and December 2020. These incidents sparked concern, yet recovery was observed as market sentiment adjusted over time.
Experts suggest that following initial market reactions, assets like BTC and ETH might experience recovery. According to analysts, historical trends signal that altcoins often rally in speculative shifts during periods of economic uncertainty and anticipated interest rate adjustments. โInitial jobless claims climbed to 263,000, an increase of 27,000 from the previous weekโs revised level of 236,000. Economists had expected jobless claims to edge down to 235,000โฆโ source
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