The recent economic indicators have set an optimistic stage for cryptocurrencies. Employment figures released last week were unexpectedly poor, which aligns perfectly with expectations for the Federal Reserve to cut interest rates. The current Producer Price Index (PPI) data further supports these potential rate cuts. Should the Consumer Price Index (CPI) not defy expectations with poor results tomorrow, these circumstances could create a favorable atmosphere for cryptocurrencies, paving the way for a promising start to the last quarter of the year.
Crypto Market Upsurge
Bitcoin (BTC) 
$78,302 has touched a critical threshold at $113,500, maintaining its support level at $112,500. Though today’s data was favorable, the atmosphere lacks exuberance due to the core PPI being higher than in previous months. Analysts underscore this, noting that the market didn’t experience a shock surge.
Despite numbers falling well below expectations, the Fed’s soft landing narrative has dissolved. What’s significant about this data is how it defied the doomsday scenario of tariff-induced inflationary spikes, which had been overly priced in by the market, now returning to balance.
Anlcnc1 mentioned that piercing the sell order block at $113,500 could lead to a stronger move towards $116,000.
PPI Data and the Final Quarter
Tariffs may not trigger incredible inflation increases, yet employment remains dismal, implying the Fed should cut rates quickly. Despite high PPI figures when Powell hinted at rate cuts during the Jackson Hole meeting, he’s likely to proceed even with a 50 bps reduction as PPI stabilizes.
Current FedWatch data indicates that expectations for a 50 bps cut have risen from zero a few days ago to over 10% today. The chance of a 75 bps reduction before year-end has climbed to 75%. The forthcoming management changes at the Bureau of Labor Statistics and the cessation of revisions against Trump could further enhance conditions.
If the Fed sustains rate cuts steadily in the final quarter, this aligns with potential altcoin ETF approvals, historical price surge predictions, and other significant developments, positioning cryptocurrencies to witness stronger ascents under improved conditions.
The stock futures saw gains, while treasury yields dipped slightly. Figures are yet above the Fed’s 2% target, and with approximately 1 million employment revisions from the BLS over the past year, monetary policy may pivot toward employment rather than inflation, rendering the 2% goal nominal, with no smooth landing in sight.
Trump made a statement at 16:08, saying:
“Just announced: No Inflation!!! A ‘too late’ Powell must cut the interest rate immediately. Powell is a total disaster, clueless!!!”
