The US service sector just hit its fastest expansion pace since early 2024, signaling a sharp divergence in the broader economy. While services are firing on all cylinders, manufacturing activity continues its downward slide—painting a pretty clear picture of uneven economic momentum.

This kind of split performance matters for crypto markets more than most realize. When services boom while manufacturing stumbles, it often reflects shifting capital allocation and consumer behavior patterns. The service economy expansion could suggest strong liquidity flowing through certain sectors, which historically tends to find its way into alternative assets during periods of economic uncertainty or rate environment shifts.

Keep tabs on how this trend plays out—divergence in economic indicators often precedes interesting moves in risk assets, including the broader crypto market. Whether this service strength stays resilient or we see a slowdown will be telling for Q-on-Q momentum.