Last night, there was a sudden bad news! Non-farm data exploded, and the Fed's September rate cut became a bubble? Bitcoin took another "roller coaster" and fell 2.42%. What happened?

Just last night, the U.S. Department of Labor released the non-farm employment data for May. 272,000 new jobs were added, far exceeding the expected 185,000. This data shows that the U.S. job market is still strong, resulting in the possibility of an expected September rate cut falling again!

As soon as the data came out, Bitcoin and U.S. tech stocks fell one after another. Bitcoin fell from 72,000 to a minimum of 68,300 in one day. Why?

A few days ago, the Bank of Canada and some European countries had already cut interest rates in advance. When will the Fed take over the "baton" of rate cuts? It has become the focus of the world, but this key data reflecting inflation in May makes people worry. There are even sources saying that before the November election, the Fed will keep the benchmark interest rate unchanged.

Why is "rate cuts" so important to cryptocurrencies? Many people may not understand.

"Rate cuts" reduce the borrowing costs of enterprises and individuals, increase the liquidity of money, and thus push up asset prices. For risky assets such as Bitcoin, this shift in monetary policy is very important because it means that investors may withdraw funds from low-yield traditional assets and invest in high-risk, high-return emerging asset classes such as cryptocurrencies in pursuit of higher capital appreciation.

In addition, low interest rates will lead to a depreciation of the US dollar, thereby increasing the attractiveness of US dollar-denominated assets and further pushing up demand for Bitcoin. Historically, such a script has been repeated many times, almost without exception.

What should we do about the current situation?

First of all, it should be clear that economic data is one aspect, and the speech of Fed Chairman Powell is also very important. According to the Fed's "nature", it usually gives a "slap" and then gives another candy. Therefore, I expect Powell or other officials to make "dovish" remarks soon, and the market may be another scene at that time.

Secondly, for position control, it is not recommended to take a large position at this stage, more than 70%. There are also uncertainties such as geopolitical conflicts and the Mt. Gox incident, which may have an impact on the performance of Bitcoin.

$BTC #非农就业人数高于预期