The non-farm payrolls explosion is not as great as the cryptocurrency explosion. July data is 'weak,' with $700 million liquidated!
In July, non-farm employment data only increased by 148,000, far below the market expectation of 183,000. 'U.S. employment has cooled,' but the cryptocurrency market is 'boiling hot.' On the day the data was released, the cryptocurrency market instantly evaporated over $700 million, with both longs and shorts suffering losses, even the candlestick chart seemed to 'tremble' on the screen.
The non-farm data, which the Federal Reserve loves, suddenly turned face, as the market originally expected a 'soft landing,' but instead received a 'soft-footed shrimp.' U.S. Treasury yields plummeted, and the dollar index experienced violent fluctuations. Some believed this was a 'super favorable factor' for crypto and rushed to go long, only to find that the next second Bitcoin plunged like a falling top, directly hitting the heart.
It is worth mentioning that the main battleground for this liquidation was the BTC and ETH contracts. The entire network saw over $700 million liquidated in 24 hours, with bulls 'bleeding profusely' while bears did not fare much better, as if a tragic 'dual cleansing' was being performed. The mastermind behind this is none other than 'market expectations' and 'high leverage fantasies.'
From a data perspective, the sluggish non-farm figures combined with slowing wage growth may indeed signal an economic slowdown. However, the cryptocurrency market's violent reaction ultimately stems from the layering of derivative leverage, where emotions act like a spring—once released, they explode. When the real economy falters, cryptocurrency sentiment goes crazier.
*Summary:* Non-farm data is low, liquidations are high, and rationality is gone. In the next wave of market activity, please keep risk control in front of the candlestick chart, and do not become the 'data trading' leeks army again. After all, in July, it wasn't just assets that were liquidated, but also a heap of overvalued fantasies.
