Crypto Prices and Stocks Tumble as Withering Rate Cut Hopes

U.S. financial markets reacted negatively as traders reduced the likelihood of a Federal Reserve rate cut in December to 33%, down from near 100% just weeks earlier. This shift followed the Bureau of Labor Statistics' announcement that the release of the October employment report would be canceled due to a government shutdown, with November's report also delayed until after the Fed's December meeting. As a result, crypto prices declined significantly, with Bitcoin dropping from $110,000 to about $89,000. Stocks tied to the cryptocurrency market suffered even more, with notable declines including stablecoin issuer Circle's stock falling 10% and nearly 50% over the past month. Federal Reserve policymaking may become challenging with the absence of crucial labor data, complicating their decision-making process ahead of the final meeting of 2025. Additional pressures arose from comments made by former President Trump regarding the Fed Chair, Jerome Powell, indicating tension over monetary policy decisions.

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