Global interest rate cuts continue to dominate economic discussions, with Turkey’s central bank recently slashing rates by 250 basis points. Meanwhile, central banks in the EU, UK, and other regions are also taking dovish steps. However, the Federal Reserve has announced that it plans to significantly slow down rate cuts in the coming year, making incoming U.S. economic data critical for market movements.
U.S. Data and Crypto Market Outlook
For cryptocurrencies to gain momentum, U.S. employment data needs to show signs of weakness, potentially pressuring the Fed into further rate cuts. The Fed has hinted that while inflation remains stable, any deterioration in the labor market could prompt accelerated rate reductions, which would likely boost crypto prices.
Today’s release of U.S. unemployment claims data was slightly below expectations, with actual claims at 219,000 versus the forecasted 223,000 and a previous figure of 220,000. However, continuing unemployment claims exceeded expectations, coming in at 1.91 million compared to the anticipated 1.881 million.
Weak labor data is crucial for rate cuts to persist. While today’s numbers suggest minor deviations, Bitcoin has already begun inching back toward the $95,000 support level. Meanwhile, altcoins have faced daily losses nearing 5%, and crypto-related stocks are experiencing declines in pre-market trading.
What’s Next for Crypto?
The interplay between U.S. economic data and Fed policy will be a key determinant for the crypto market in the months ahead. Investors are closely watching labor trends, as sustained weakness could create favorable conditions for a broader cryptocurrency rally. For now, the mixed data suggests a cautious outlook, with Bitcoin holding ground and altcoins under short-term pressure.
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