US Nonfarm News Tonight: Warning of Volatility for Cryptocurrency Market
Tonight, the US Non-Farm Payrolls (NFP) report will be released, providing an important indicator to assess the health of the world's largest economy. This data not only has a strong impact on traditional markets such as stocks and gold, but can also cause major fluctuations in the cryptocurrency market.
Why is Nonfarm data important?
The Nonfarm report measures the number of new jobs created in the previous month in the U.S., excluding agricultural sectors. This is one of the key factors for the U.S. Federal Reserve (Fed) to decide on monetary policy, particularly regarding interest rate increases or decreases.
• If Nonfarm is higher than expected: This may indicate that the U.S. economy is recovering strongly, leading to the possibility of the Fed continuing to maintain high interest rates. This often puts downward pressure on risk assets like cryptocurrencies.
• If Nonfarm is lower than expected: The Fed may consider easing monetary policy, allowing capital to flow into assets like #bitcoin or Ethereum.
What should the cryptocurrency market pay attention to?
1. Impact on Bitcoin price: $BTC, often referred to as 'digital gold,' tends to be sensitive to macroeconomic data. A positive Nonfarm report may cause investors to pull out of cryptocurrencies to return to safer assets.
2. High volatility of altcoins: Altcoins, especially those with low market capitalization, tend to react more strongly than Bitcoin during significant events. Be cautious when trading during this time.
3. Market psychology: Nonfarm data can influence investor sentiment globally, especially in the context of ongoing concerns about inflation and economic recession.