Last night, the May non-farm payrolls data released by the U.S. Department of Labor far exceeded expectations. The market had predicted that the number of jobs would increase by 182,000, but the result was as high as 272,000. This shows that the U.S. job market is stronger than expected, but investors We are not happy to see this situation, because it may reduce the urgency of the Fed to cut interest rates.

As market expectations for interest rate cuts declined, all major U.S. stock indexes closed in the black, while Bitcoin and other cryptocurrencies also began to fall after the data was released, falling as low as $68,500. In this regard, analysts at QCP Capital issued a market analysis saying that unexpectedly higher-than-expected non-agricultural data and an increase in the unemployment rate are enough to trigger risk aversion before the release of U.S. inflation data and the FOMC interest rate decision next Wednesday.

Additionally, it’s probably no coincidence that Roaring Kitty’s livestream attracted nearly a million people and came just before GME’s stock price plummeted and altcoins and meme coins began to collapse, wiping out more than $40 billion in market value.

But the good news is that analysts at QCP Capital pointed out that during the decline they saw "bullish liquidity" emerging in the market, including a combination of selling aggressive puts and buying calls, which was particularly evident on Bitcoin. , and since then, BTC and ETH have rebounded from lows of $68,300 and $3,575.

The company concluded:

"We think this is a good opportunity to buy the lows as the market will increasingly price in at least one rate cut from the Fed. As the rest of the world continues to cut rates, it will be difficult for the U.S. to stay out."

In terms of investment, QCP Capital recommends that investors adopt the "ERKO Seagull Strategy", which is a structured option portfolio designed to capture upside potential while protecting downside risks.

(This article is reproduced from GT Radar with permission)

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This article Non-farm payrolls data far exceeded expectations! Is a major correction in the cryptocurrency market a good time to enter the market? First appeared in Zombit.