Friends, I think the December US non-farm payrolls data could really change the crypto market.
If the numbers fall short of expectations (153k), it could signal a cooling labor market, which could lead to Fed easing. This is likely to weaken the dollar, creating favorable conditions for the growth of risky assets such as Bitcoin. A change in monetary policy to a more lenient one often increases liquidity, and cryptocurrencies tend to benefit from this as investors seek more profitable alternatives.
On the other hand, if the NFP data is unexpected, it could reinforce the Fed’s hawkish stance, strengthening the dollar and putting pressure on Bitcoin. A strong labor market could mean that inflation will remain high, potentially dampening market enthusiasm for crypto assets.
For now, Bitcoin’s reaction will depend on the extent of the deviation from expectations and its impact on broader market sentiment. Watch for volatility around the release!
What is your prediction?
