• US poverty rate fell 0.5 points to 10.2% in 2025, Census Bureau reported Tuesday.
• Real median household income hit a record $87,460, up 2.6% from $85,210 in 2024.
• Child poverty dropped to a historic low of 13.4%; 34.5 million stayed below the poverty line.
Census Data Puts 2025 Poverty at 10.2%
The US Census Bureau reported on Tuesday that the national poverty rate fell to 10.2% in 2025, while real median household income climbed to a record $87,460. The release covers calendar year 2025 only and landed one day before the Federal Reserve's rate decision — with Bitcoin (BTC) changing hands near $76,000 as traders weigh whether the Fed leans dovish or holds the line on inflation. Per the official Census release, the poverty rate dropped 0.5 percentage points year over year, though 34.5 million people remained below the poverty line. Median household income rose 2.6% from $85,210 in 2024, the strongest real reading on record. The gains skewed upward: income at the 90th percentile rose 1.7%, the 10th percentile showed no significant change, and the Gini coefficient — the standard gauge of income inequality — held steady. Child poverty fell to a historic low of 13.4%. The Supplemental Poverty Measure, which counts taxes, refundable credits and benefit programs, was statistically unchanged at 13.1%, with Social Security alone keeping 28.8 million people above that threshold. Treasury Secretary Scott Bessent highlighted the figures during House testimony, while Democrats used the same session to press him on gasoline prices and mortgage costs. For digital-asset desks that treat macro prints as the main driver of risk leverage across crypto, the report is a backward-looking snapshot: it predates 2026's price shocks, and its upbeat tone sits awkwardly against prevailing FUD over sticky inflation.
Hotter Inflation Has Overtaken the 2025 Picture
The income gains the Census recorded now face a very different economy. Inflation stayed at or below 3% across 2025, but consumer prices rose 3.4% in the 12 months through August 2026, eroding the purchasing power behind last year's record median. Energy has been the sharpest edge: Brent crude has pushed back above $100 a barrel, diesel set a record $6 a gallon, and the 30-year fixed mortgage rate topped 7% last week. Labor data tells a split story. Real average hourly earnings fell 0.3% over that stretch, BLS figures show, though longer working hours lifted real weekly earnings by 0.3%. The jobs market itself improved: employers added 162,000 jobs in August, far above the average monthly gain of 31,000 over the prior year, while unemployment held at 4.1%. Household balance sheets keep stretching, too — debt reached $18.8 trillion in the second quarter, and New York Fed data put about 4.7% of outstanding balances in some stage of delinquency, a strain that historically pushes stressed consumers toward higher-risk bets, from margined trading to chasing yield in spot Bitcoin ETF products. All of it funnels into Wednesday's Fed decision, where Chairman Kevin Warsh has signaled concern about inflation. The next household income reading will not arrive until September 2027, so until then the Fed's rate path and monthly inflation prints will carry more weight for crypto than any Census release.
Bitcoin Waits on Wednesday's Fed
COINOTAG's aggregate market data shows a market holding its breath: the Fear & Greed Index sits at 51/100, squarely neutral, while Bitcoin accounts for 68.4% of our tracked market capitalization of roughly $2.23 trillion. With BTC spot near $76,000, the Fed's Wednesday decision — not the Census print — sets Bitcoin's (BTC) next direction.
