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.

According to The Kobeissi Letter, the Philadelphia Fed Services index plummeted 19.4 points in March to -32.5, marking its lowest level since the 2020 pandemic. This significant drop indicates a decline in service sector activity, excluding 2020, it is the worst in 14 years. The new orders index also saw a steep decline of 18.2 points to -19.5, the lowest since April 2023, suggesting weakening demand. These indicators can influence market sentiment and trading strategies, particularly in sectors sensitive to economic activity fluctuations.