The post Americans Running Out of Crypto Money in 2026: Altcoins at Risk? appeared on BitcoinEthereumNews.com.

US economic data is flashing early warning signs for risk assets and crypto. The latest labor figures suggest household income growth may weaken heading into 2026. That trend could reduce retail investment flows, especially into volatile assets like crypto. In the short term, this creates a demand problem rather than a structural crisis. Sponsored Sponsored US Labor Data Signals Slower Disposable Income Growth The latest Nonfarm Payrolls report showed modest job creation alongside a rising unemployment rate. Wage growth also slowed, pointing to weaker income momentum for households. Disposable income matters for crypto adoption. Retail investors typically allocate surplus cash, not leverage, to risk assets. When wages stagnate and job security weakens, households cut discretionary spending first. Speculative investments often fall into that category. US Job Growth Over the Years. Source: X/Jed Kolko Retail Investors Are Most Exposed And Altcoins Could Feel It First Retail participation plays a larger role in altcoin markets than in Bitcoin. Smaller tokens rely heavily on discretionary retail capital chasing higher returns. Sponsored Sponsored Bitcoin, by contrast, attracts institutional flows, ETFs, and long-term holders. That gives it deeper liquidity and stronger downside buffers. If Americans have less money to invest, altcoins tend to suffer first. Liquidity dries up faster, and price declines can persist longer. Retail investors may also be forced to exit positions to cover expenses. That selling pressure weighs more heavily on smaller-cap tokens. Average Crypto RSI Remains Near Oversold Levels. Source: CoinMarketCap Sponsored Sponsored Lower Income Does Not Mean Lower Prices, But It Changes The Driver Asset prices can still rise even when incomes weaken. That typically happens when monetary policy becomes more supportive. A cooling labor market gives the Federal Reserve room to cut rates. Lower rates can boost asset prices through liquidity rather than household demand. For crypto, that distinction…

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Filed under: News - @ December 17, 2025 12:24 am