The US government\u2019s economic data blackout continues, with the shutdown entering day 23. There has been no September jobs report, any key inflation data, or initial jobless claims for weeks.<\/p>\n
Additionally, the Fed has lost access<\/a> to key private jobs data from ADP, covering 20% of private workers, reported<\/a> the WSJ and Kobeissi Letter.<\/p>\n \u201cThe Fed must lean even more dovish as the government shutdown continues, and they must cut rates,\u201d it said before adding:<\/p>\n \u201cIn fact, odds of a 50 basis point rate cut by year-end are surging.\u201d<\/p>\n The Fed will continue<\/a> to cut rates aggressively in the wake of the data blackout and stagflation for one simple reason: \u201cthey are afraid of being \u2018too late\u2019.\u201d<\/p>\n CME futures markets currently predict<\/a> a 96.7% probability of a 25 basis point rate cut at the FOMC meeting on October 29. The likelihood of a further 0.25% cut in December has also surged to 96.5% and the odds of a third cut in January are almost 60%.<\/p>\n When the Fed cuts rates<\/a>, traditional safe investments like savings accounts, Treasury bonds, and money market funds offer lower returns. This makes riskier assets like crypto more attractive by comparison, as Investors seeking higher yields are more likely to allocate capital to crypto when they\u2019re earning minimal interest elsewhere.<\/p>\n Rate cuts also make borrowing cheaper, which puts more money into circulation throughout the financial system, increasing liquidity.<\/p>\n \u201cMany traders look back at positive Q4 performance, anticipating repetition, so they buy, and the price goes up,\u201d said<\/a> analyst \u2018cryptobirb\u2019 before adding:<\/p>\n \u201cAll in all, the recent [leverage flush] crisis shouldn\u2019t cancel year-end run.\u201d<\/p>\n \u201cThe government shutdown has halted the drain of the TGA (Treasury General Account) and No RRP (Reverse Repo Facility) to drain [which means] less liquidity (temporarily) [leading to] sloppy crypto as the pointy end of the liquidity spear,\u201d said economist\u00a0 Raoul Pal, who added, \u201cThis too shall pass.\u201d<\/p>\n The government shutdown has halted the drain of the TGA + No RRP to drain > Less liquidity (temporarily) > sloppy crypto as the pointy end of the liquidity spear. This too shall pass..<\/p>\n If you don\u2019t understand best ask @grok<\/a> or the Raoulbot on @RealVision<\/a> for my views https:\/\/t.co\/AXsQMVgz7l<\/a><\/p>\n \u2014 Raoul Pal (@RaoulGMI) October 23, 2025<\/a><\/p>\n\n The Senate failed to advance the House-passed funding bill that would end the government shutdown for the 12th time on Wednesday, which means the stalemate will continue.<\/p>\n Crypto markets have not moved much over the past 24 hours, with total capitalization at $3.75 trillion.\u00a0Bitcoin has traded<\/a> in a tight range around the key $108,000 support-turned-resistance level and has struggled to break above it.<\/p>\n Ether prices remain suppressed, failing to reclaim $4,000 after a triple dip to $3,700, and altcoins continue to bleed out slowly.<\/p>\n The post Fed Must Lean Dovish as US Govt Shutdown Continues, Rate Cut Odds Surge<\/a> appeared first on CryptoPotato<\/a>.<\/p>","protected":false},"excerpt":{"rendered":" The US government\u2019s economic data blackout continues, with the shutdown entering day 23. There has been no September jobs report, any key inflation data, or initial jobless claims for weeks. Additionally, the Fed has lost access to key private jobs data from ADP, covering 20% of private workers, reported the WSJ and Kobeissi Letter. \u201cThe […]<\/p>\n","protected":false},"author":0,"featured_media":106986,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[],"class_list":["post-106985","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-discovery"],"_links":{"self":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts\/106985"}],"collection":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=106985"}],"version-history":[{"count":0,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts\/106985\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/media\/106986"}],"wp:attachment":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=106985"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=106985"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=106985"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}Impact On Crypto<\/h2>\n
Markets Begin to Consolidate<\/h2>\n