In the wake of the government shutdown, crucial US economic data, significantly impacting the cryptocurrency markets, has been released. The Federal Reserve had previously executed three interest rate cuts due to weakening employment markets. Thus, while inflation experiences limited growth, further interest rate cuts are vital if employment weakens. The latest data was just disclosed.
Latest US Data Breakdown
Key indicators like the Unemployment Rate, Non-Farm Payrolls, and Average Earnings comprise the week’s most important report set. With the shutdown concluded, next week’s release will feature the first US inflation report. Before deciding on interest rates at the month’s end, the Fed will have a clear view of the current US economic condition.
Although last month’s data seemed favorable for cryptocurrencies, it was revealed that the data was inaccurately collected and unreliable due to the shutdown, thus showing no impact on the charts.
- US Unemployment Rate Reported: 4.4% (Expectation: 4.5%, Previous: 4.6%)
- US Non-Farm Payrolls Reported: 50K (Expectation: 70K, Previous: 64K)
- US Average Earnings Reported: 3.8% (Expectation: 3.6%, Previous: 3.5%)
The figures are not favorable for cryptocurrencies but indicate a reduced recession risk. The lower-than-expected unemployment rate supports the narrative of job market recovery, which is crucial for the Fed. Moreover, the rise in average earnings augments the case for employment improvement.
While BTC remains largely unaffected by this data, the figures which currently support two interest rate cuts this year could potentially unsettle risk markets. Our focus now shifts to the Supreme Court’s tariff decision.
