The U.S. employment data for July looks very pessimistic, basically paving the way for a rate cut in September.

Here are the data points:

- In July, only 73,000 new jobs were added, far below expectations. More critically, the data from the previous two months was significantly revised downward, erasing a total of 258,000 jobs, indicating that the slowdown in the job market is more severe than we imagined.

- The unemployment rate rose to 4.2%, marking the second consecutive month of increases.

- Wages continue to rise (annual growth of 3.9%), but the growth rate is slowing down, creating a significant room for rate cuts.

The employment data triggered a two-tier chain reaction: one is clearing the way for the Federal Reserve to cut rates, and the other affects U.S. Treasury yields.

It equates to providing cryptocurrency and the stock market with an expectation that a mildly slowing economy combined with moderate monetary easing is a long-term benefit for top assets like $BTC and $ETH.

What investors are currently most pleased to see is a gentle cooling.

What needs to be wary of is if employment data continues to turn negative, the panic of recession may drive funds away from all risk assets, and the cryptocurrency market would also likely be no exception.