- Major cryptocurrencies saw declines as investors reacted to new U.S. jobless claims data and federal government shutdown.
- Bitcoin traded around $121,277, while Ethereum slipped to $4,333 and XRP dropped 0.3% to $2.80.
- U.S. lawmakers failed to prevent a government shutdown, impacting economic data availability and delaying policy decisions.
- Labor market indicators showed a rise in unemployment claims, partly linked to the shutdown and contractor layoffs.
- The release of September’s Consumer Price Index report will proceed with emergency measures despite limited government operations.
Cryptocurrency prices fell in early Friday trading as investor uncertainty increased amid ongoing U.S. government shutdown and recent labor market data. The moves come as policymakers consider future monetary policy decisions with limited economic information available.
At the time of reporting, Bitcoin was priced at approximately $121,277. Ethereum traded at $4,333, while XRP slipped 0.3% to $2.80, according to CoinMarketCap data. Other major tokens, including BNB, Solana, and Cardano, also experienced declines.
Private surveys indicated an increase in new U.S. unemployment benefit claims, Reuters reported. These figures suggest that some early layoffs of contractors have occurred due to the government shutdown, as hundreds of federal employees remain at home during the funding impasse.
Minutes from the Federal Reserve’s September meeting noted a narrow majority favoring two potential 25-basis-point interest rate cuts in the upcoming October and December sessions. The minutes stated: “Participants stressed the importance of taking a balanced approach in promoting the committee’s employment and inflation goals.” Labor market weakness continues to be a central concern for the central bank.
Despite market declines, data from SoSoValue showed that Bitcoin ETFs registered $197.7 million in inflows on Thursday, extending gains seen since September 29. Investor Michael Van De Poppe commented, “Probably, the markets are bottoming in the coming 1-2 days, and the fun is back on. I don’t think we’ll see a dip correction on Bitcoin, it’s also not the peak of the bull [run].”
The ongoing shutdown has delayed the release of several key economic indicators. However, the Bureau of Labor Statistics will recall a limited number of staff to publish the September Consumer Price Index report. This data is expected to be available before the Federal Reserve’s next meeting at the end of the month.
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