U.S. Economic Data and Cryptocurrency Market Pressures

The U.S. government shutdown has disrupted economic reporting, delaying key data releases and casting doubt on their reliability. Federal Reserve Chair Jerome Powell acknowledges these challenges, noting that the figures may be skewed by collection gaps during the shutdown. The unemployment rate unexpectedly surged to 4.6%—a level not projected by the Fed until 2025—bolstering the case for interest rate cuts. Revised employment data for August-September showed a downward adjustment of 33,000 jobs, aligning with Powell's earlier warnings.

Despite these macroeconomic signals, cryptocurrencies remain under pressure. Risk appetite is waning as markets brace for Japan's rate decision, year-end liquidity drains, and potential January volatility from MSCI rebalancing and Supreme Court rulings. The Fed's inflation-focused mandate now faces a counterweight: rising unemployment. Cryptocurrencies, typically sensitive to liquidity conditions, have yet to respond positively to the shifting policy landscape.