Why did the U.S. stock market and Bitcoin crash collectively? The reason behind it is actually related to economic data, you definitely won't guess!

Hello everyone, today we are going to talk about the reasons why the U.S. stock market and Bitcoin crashed collectively.

You might be very surprised that the key behind this is actually related to economic data.

Let's take a look at the specific data: the number of job vacancies in the U.S. in November reached 8.098 million, expecting 7.74 million, and the previous figure was 7.744 million, which greatly exceeded expectations and is very strong. Now let's look at the ISM Non-Manufacturing PMI for December in the U.S., which is 54.1, expecting 53.3, and the previous value was 52.1, also greatly exceeding expectations and incredibly strong.

You might wonder why strong economic data could lead to a market crash? In fact, the ISM Services (Non-Manufacturing Index) is an important data released by the Institute for Supply Management (ISM) in the U.S., which examines the situation in non-manufacturing sectors regarding production, new orders, commodity prices, inventory, employees, order deliveries, new export orders, and imports, serving as a leading indicator of economic health. Generally, any index above 50 indicates economic expansion, while below 50 indicates contraction. Although its impact on GDP is much smaller than that of the ISM Manufacturing Index, if this indicator is higher than expected, it should be considered that the dollar is strong/bullish, and if it is lower than expected, the dollar should be viewed as weak/bearish.

However, sometimes the market reaction may not be so intuitive; strong economic data can also trigger market concerns, such as rising inflation pressures and increased expectations of interest rate hikes by the Federal Reserve, all of which could lead to a market crash.

Behind the crash of the U.S. stock market and Bitcoin, economic data played an important role. For investors, it is very important to stay alert and pay attention to changes in economic data. After watching the video, what are your thoughts? Come and chat with me in the comments!