US Weekly Jobless Claims Hit 1969 Low: What Does It Mean For Crypto?

US initial claims for state jobless benefits dropped by 22,000 to 187,000 for the week ending July 18, the lowest level since September 1969. The drop hardened bets that the Federal Reserve (Fed) could raise interest rates at next week's meeting.

The CME FedWatch tool now puts the odds of a hike at 33.7%, up from 11.8% a week earlier. That reverses the rate cut hopes that lifted crypto earlier this month.

Strong Labor Data Boxes In the Fed

The 22,000 drop was the largest decline in three months. Economists surveyed by Reuters had expected claims to rise to 212,000.

Furthermore, the number of people collecting benefits for more than a week, a rough gauge of hiring, fell to 1.796 million in the week ending July 11, a six-week low.

The drop lands as the US-Iran war lifts oil prices and sharpens inflation concerns. Those pressures pushed traders to reprice the July 29 meeting. CME FedWatch showed the odds of a hike at 33.7% on July 23, up from 11.8% a week earlier. A hold sat at 66.3%.

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