The US labor market showed resilience in the week ending May 23 as initial unemployment claims edged higher to 215,000, up 5,000 from the prior week, according to the US Department of Labor.

The four-week moving average increased to 209,000, while continuing claims rose by 15,000 to 1.79 million in the week ending May 16, indicating a still-stable labor market backdrop.

Since the post-pandemic recovery, jobless claims have remained within a narrow 200,000–250,000 range, reflecting minimal layoffs even as hiring has cooled compared to prior years.

Job creation has averaged 76,000 per month so far this year, down from 122,000 in 2024 and far below the roughly 400,000 monthly pace during the 2021–2023 rebound. Structural labor shifts, including retirement trends and immigration policy effects under Donald Trump, have lowered the threshold for maintaining a stable unemployment rate.

Meanwhile, geopolitical tensions have raised energy market concerns, particularly around the Strait of Hormuz, contributing to a sharp rise in US gasoline prices.

The Federal Reserve has been walking a tightrope between managing inflation and not strangling growth. A resilient labor market gives the Fed room to be patient, reducing the urgency for rate cuts. When employers aren’t laying people off in meaningful numbers, the central bank has less justification to lower borrowing costs.

For risk assets, including crypto, lower interest rates generally push capital toward higher-risk, higher-reward investments like Bitcoin and other digital assets. Higher rates, or rates that stay elevated for longer, tend to keep money parked in safer vehicles like Treasuries.

No immediate price reactions in crypto markets were observed following the jobless claims report.

Bitcoin fell below $73,000 overnight, leading to a market-wide selloff as geopolitical tensions escalated between the US and Iran, raising concerns over energy security and the Strait of Hormuz.

ETF outflows added pressure, with about $733 million exiting US spot Bitcoin ETFs in a single day, including heavy withdrawals from the iShares Bitcoin Trust (IBIT).