According to The Kobeissi Letter, the Philadelphia Fed Manufacturing Index dropped by 38.9 points in April 2025, reaching -26.4, the lowest level since April 2023 and the second-lowest since 2020. New orders fell sharply by 42.9 points to -34.2, marking their lowest point since April 2020 (source: The Kobeissi Letter on Twitter, May 12, 2025). For crypto traders, this significant downturn in US manufacturing signals potential risk-off sentiment in traditional markets, which could drive increased volatility in Bitcoin and altcoins as investors seek alternative assets.

According to The Kobeissi Letter, the Philadelphia Fed Manufacturing Index plunged by 38.9 points in April to -26.4, marking its lowest reading since April 2023 and the second-lowest since 2020 (source: The Kobeissi Letter, Twitter, May 12, 2025). Additionally, new orders fell by 42.9 points to -34.2, the weakest since April 2020. This sharp contraction in US manufacturing signals increased economic uncertainty, which often leads to heightened volatility in both traditional equities and the cryptocurrency market as traders seek safe-haven assets and reassess risk exposure.