The NY Empire State Index, which shows the state of business conditions in New York, released new data on Monday indicating significant weakness in the US economy.

The data showed that manufacturing activity in New York state declined in October for the third consecutive month. This is a sign of lingering headwinds for the manufacturing sector amid slowing demand, according to new data from the Federal Reserve Bank of New York released on Monday.

According to the state manufacturing survey, the general business conditions index decreased to minus 9.1 in October from minus 1.5 in September. In other words, -9.1 shows that general manufacturing business conditions in New York have turned worse than the expected forecast of -4.3.

While the positive index shows an improving business environment, the negative data highlights worsening conditions in New York. Minus 9.1 shows that factory activity fell considerably compared to the previous month.

Some 32% of companies surveyed said business conditions worsened in October and demand for goods stagnated during the month, according to the survey. Manufacturers in the region do not expect business conditions to improve in the next six months.

And what does this mean for cryptocurrencies? The weakness of the US economy means that Bitcoin and other crypto assets are becoming more attractive as an alternative currency, as holding the inflationary fiat currency (the US dollar) becomes detrimental to people’s purchasing power.

Earlier this week, cryptocurrencies in general are seeing a rally as recently released New York state data confirmed the notion that the Federal Reserve has gone overboard with its restrictive monetary policy, slowing economic growth. .

At time of writing at 8:12 pm EAT on Monday night, Bitcoin was trading at $19,537.57, up 2.01% from yesterday’s $19,072.78, while Ether It was trading 1.5% higher at $1,322.71. Cardano (ADA) was up 0.8%, trading at $0.3735, while Solana was up 1.1% in price, trading at $30.81.

The price of Bitcoin fell on Thursday of last week after the publication of the September inflation data, which indicated that inflation increased more than expected. The price of the token dipped below $19,000 and approached the end of the $18,000 price range. However, cryptocurrency prices have rebounded from the big drop that followed the latest cryptocurrency index data release. consumer prices, a key measure of inflation.

Prices have held steady as cryptocurrencies have not been in a heavily macro-driven bear market in the month of October. Bitcoin prices have been remarkably stable in recent weeks while other assets, including stocks, have plummeted.

Despite recent stability, Bitcoin and other altcoins have largely remained under pressure as investors battle rising inflation and tighter monetary policy from the Federal Reserve.

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