U.S. Economic Data Deluge and Cryptocurrency Market Decline

The U.S. job market shows signs of strain as the unemployment rate climbs to 4.6%, its highest since September 2021, exceeding Federal Reserve projections for 2025. This underscores growing pressure for interest rate cuts. Federal Reserve Chair Powell remains skeptical of recent data reliability due to disruptions during the government shutdown, which delayed multiple economic reports.

Revised employment figures for August and September were collectively downgraded by 33,000 jobs, confirming weaker conditions than initially reported. While this typically supports monetary easing, cryptocurrencies have defied expectations by continuing their decline rather than rallying. The Fed's dual mandate—balancing maximum employment and inflation control—has tilted heavily toward inflation since 2022, leaving employment concerns to emerge as a secondary crisis.

Market observers note a paradoxical reaction in digital assets, which remain under pressure despite favorable conditions for risk assets. The confluence of murky economic data and crypto market underperformance suggests deeper structural issues may be at play beyond traditional macroeconomic drivers.