Welcome to the US Crypto News Morning Briefing—your essential rundown of the most important developments in crypto for the day ahead.
Grab a coffee and look at the US economy, where Wall Street’s record highs may be hiding deeper trouble. Several key indicators point to a reality that could be far less optimistic than the markets would have you believe.
Crypto News of the Day: Three Macro Indicators Show Dangers for the US Economy
The S&P 500, reported in a recent US Crypto News publication, continues to post record highs. However, a set of key macroeconomic indicators suggests the underlying health of the US economy may not be as strong as the market’s performance implies.
Alphractal founder and CEO Joao Wedson flagged three metrics that paint a more cautious picture. He cites industrial productivity, consumer sentiment, and the Kansas City Fed’s Labor Market Conditions Index.
“[They] reveal that the reality of the American economy does not match the performance of the stock market,” wrote Wedson.
Stagnant Industrial Productivity
The Industrial Productivity Index, which measures how efficiently the industrial sector produces goods and services over time, has remained largely unchanged since 2007.
Wedson attributes this to a post-iPhone era shift in economic focus toward the technology sector. Meanwhile, more traditional sectors like mining, services, and manufacturing have shed jobs.
This indicates that US economic growth over the past two decades has been concentrated in a handful of high-growth industries rather than spread evenly across the economy.
Weak Consumer Sentiment
While equity markets roar ahead, consumer confidence remains subdued. The index sharply declined last month and has only slightly rebounded despite stock gains.
“…the average American is not optimistic about the economy or their personal financial situation,” he stated.
Low sentiment suggests households are feeling the pinch from inflationary pressures, elevated interest rates, or stagnant wage growth. He says this comes despite investors reaping returns from a surging tech sector.
Labor Market Disconnect
Perhaps the most telling signal comes from the Kansas City Fed’s Labor Market Conditions Index, a composite of 24 employment variables.
“[S&P 500 growth] does not align with the real evolution of employment and work conditions,” he added.
Instead, mega-cap tech companies such as NVIDIA and Microsoft have driven much of the market’s upward momentum.
Meanwhile, traditional industrial and labor-heavy sectors have seen limited progress for two decades. This divergence raises concerns about the rally’s sustainability if it remains concentrated in a narrow band of stocks.
Tech Euphoria or Trouble Ahead?
The concentrated nature of the current rally has drawn comparisons to past speculative booms. Wedson questioned whether the US might be amid an AI-fueled market bubble, likening it to the dotcom era.
While tech leaders and billionaires promise revolutionary breakthroughs, Wedson remains skeptical.
“[There is] nothing truly new or impactful in AI yet [to justify some of the lofty valuations],” he said.
Nevertheless, the data paints a picture of a market increasingly disconnected from Main Street.
On one side, investors and long-term shareholders in major tech companies continue to see substantial gains.
Conversely, ordinary Americans are grappling with low confidence, uneven wage growth, and stagnant productivity in traditional sectors.
Will this divergence continue without a broader economic uplift? Could Wall Street’s optimism be a sign of genuine economic transformation? Is it a prelude to another painful correction?
Wedson’s warning signals that Wall Street’s tech-driven rally may mask deeper economic weakness, which could be a red flag for crypto markets.
If macro cracks trigger a risk-off shift, liquidity could dry up, pulling Bitcoin and altcoins lower in the short term, potentially derailing new highs.
The parallels to past speculative booms, like the dotcom era, also resonate in crypto, where hype cycles can outpace fundamentals.
However, long-term Bitcoin advocates may see economic strain as fuel for the “store-of-value” narrative.
“Liquidity conditions in the US as well as globally are already historically loose, and further liquidity injections via different mechanisms are likely – this should continue to support digital asset prices,” Katalin Tischhauser, Head of Research at Sygnum Bank, said in a statement to BeInCrypto.
This is especially true if it prompts looser monetary policy.
Charts of the Day
This chart shows that industrial production growth has slowed relative to historical trends, yet equity markets continue to soar. It indicates Wall Street’s rally is not mirrored by real-economy output.
Consumer sentiment has plunged to multi-year lows while the S&P 500 climbs. It points to a divergence between public economic perception and investor market optimism.
The chart shows labor market conditions weakening while the S&P 500 remains near highs, highlighting a growing disconnect between employment fundamentals and stock market performance.
Byte-Sized Alpha
Here’s a summary of more US crypto news to follow today:
- BNB price shatters records at $868—Is the March to $1,000 already underway?
- Coinbase loses $300,000 in MEV Bot attack after 0x Protocol contract error.
- Robinhood crypto trading volume defies rising competition and banking pressures in July
- Tron founder Justin Sun resorts to legal war to keep his crypto secrets.
- Cardano’s case for a 200% rally: ETF Odds, whale activity, and Golden Cross
- XRP nears breakout but three hidden metrics hint the rally may have to wait.
- OKB’s 160% rally meets $58 million sell wall — Is a free fall next?
- XRP Ledger’s crossroads: Global financial backbone or a $190 billion illusion?
- Will Avalanche’s first token unlock in three months trigger AVAX price drop to $20?
- Solana reclaims $200: Surge in new buyers signals more upside after 21% jump.
- How are whales trading as Ethereum nears 2021 all-time high?
Crypto Equities Pre-Market Overview
| Company | At the Close of August 13 | Pre-Market Overview |
| Strategy (MSTR) | $389.90 | $385.20 (-1.21%) |
| Coinbase Global (COIN) | $327.01 | $327.25 (+0.073%) |
| Galaxy Digital Holdings (GLXY) | $28.34 | $28.66 (+1.13%) |
| MARA Holdings (MARA) | $15.86 | $15.76 (-0.63%) |
| Riot Platforms (RIOT) | $11.59 | $11.51 (-0.69%) |
| Core Scientific (CORZ) | $13.85 | $13.80 (-0.36%) |
The post Warning Signs Flash for US Economy Behind Wall Street’s Record Highs | US Crypto News appeared first on BeInCrypto.
Source: https://beincrypto.com/warning-signs-economy-wall-street-us-crypto-news/