US non-farm data is about to be announced, will the market turn upside down?
This Friday, the non-farm data for December will be revealed, with the market predicting a median increase in employment of 153,000, slightly lower than November's figures. With the continuous changes in the Federal Reserve's monetary policy and the labor market, this report may become a "trigger point" for the market. Whether you're trading stocks or cryptocurrencies, you need to keep a close watch!
What if the data falls short of expectations?
This could further strengthen the market's expectations for a rate cut by the Federal Reserve, as a weakening job market typically indicates a slowdown in economic growth, significantly increasing the possibility of a rate cut.
For the cryptocurrency market, the liquidity easing brought by a rate cut is undoubtedly good news, potentially becoming a driving force for a rebound in Bitcoin prices.
Key impacts on the cryptocurrency market:
1️⃣ Funds flowing back to risk assets: If the data is weak, funds may shift towards safe-haven assets, with Bitcoin playing the role of "digital gold" and attracting significant capital inflows.
2️⃣ Market sentiment rebound: Bitcoin's recent performance has been volatile, but the non-farm data could reignite the market's interest in digital currencies, especially when the Federal Reserve's stance leans dovish.
3️⃣ Volatility surge: Regardless of the outcome, non-farm data often exacerbates short-term market volatility, potentially providing a great opportunity for short-term traders to showcase their skills.
