Bitcoin's rate relief hopes fade as service inflation rises
In October, US services growth showed signs of slowing, with the Institute for Supply Management reporting a PMI of 54.5, down from 54.9 in September. While this indicates that services activity is still expanding, the situation is complicated by rising inflation pressures. The prices index eased slightly to 73, but the 12-month average reached 69.2, the highest level since April 2023. This suggests persistent cost pressures in the economy.
Employment in the services sector saw some improvement, with the employment index rising to 51.4, indicating stronger hiring. However, tariff and fuel costs continue to challenge supply chains, and many businesses have yet to pass on increased costs to consumers, leaving uncertainty around future inflation rates. The Federal Reserve maintained its target interest rate range at 3.75%-4% on October 28, emphasizing the need for more data to guide monetary policy.
For Bitcoin traders, the current inflationary pressures and mixed signals from the services sector raise questions about future rate cuts that could support Bitcoin prices. The upcoming October employment report, due on November 6, could be big in shaping market expectations and influencing Bitcoin's demand. As traders watch for potential easing in financial conditions, the focus remains on how these economic indicators may impact crypto markets.
#CryptoNews
In October, US services growth showed signs of slowing, with the Institute for Supply Management reporting a PMI of 54.5, down from 54.9 in September. While this indicates that services activity is still expanding, the situation is complicated by rising inflation pressures. The prices index eased slightly to 73, but the 12-month average reached 69.2, the highest level since April 2023. This suggests persistent cost pressures in the economy.
Employment in the services sector saw some improvement, with the employment index rising to 51.4, indicating stronger hiring. However, tariff and fuel costs continue to challenge supply chains, and many businesses have yet to pass on increased costs to consumers, leaving uncertainty around future inflation rates. The Federal Reserve maintained its target interest rate range at 3.75%-4% on October 28, emphasizing the need for more data to guide monetary policy.
For Bitcoin traders, the current inflationary pressures and mixed signals from the services sector raise questions about future rate cuts that could support Bitcoin prices. The upcoming October employment report, due on November 6, could be big in shaping market expectations and influencing Bitcoin's demand. As traders watch for potential easing in financial conditions, the focus remains on how these economic indicators may impact crypto markets.
#CryptoNews
