10x Research has conducted a comprehensive market analysis revealing that since the election of Donald Trump in early November of last year, the U.S. stock market has wiped out all gains that were initially expected from anticipated stronger economic growth and tax reductions. The post-election surge in altcoin prices that many investors had hoped for quickly faded by December 6 of the same year.
Following the peak interests in early December, we observed a marked decline in cryptocurrency trading volumes, with funding rates reaching their zenith on the significant date of December 6. It has been identified that macroeconomic factors predominantly drive the cycles of the Bitcoin and cryptocurrency markets.
In a proactive measure, the Federal Reserve opted for an emergency interest rate cut of 50 basis points back in September due to escalating fears over an impending economic recession, primarily fueled by a starkly weak labor market in the U.S. Nonetheless, incoming data has since contradicted this initial stance.
October figures indicated that non-farm payrolls had risen by a mere 12,000, yet a significant recovery was noted in November where job additions skyrocketed to 227,000. Moreover, a report released last week showed that job creation maintained its momentum, with an impressive 256,000 jobs added by January 10, coupled with a decline in the unemployment rate to 4.1%.
These recent statistics cast doubt on the Federal Reserve's original rationale for the rate reduction, thereby challenging the validity of its ongoing rate-cutting narrative..