The cryptocurrency market may face violent fluctuations tonight! Key US employment data is about to be released
Cryptocurrency investors please note: At 21:30 Beijing time on January 10, 2025, the United States will release the unemployment rate and seasonally adjusted non-farm payrolls data for December. Both data are regarded as important indicators of the health of the US economy, and their results may have a significant impact on the cryptocurrency market.
The market generally expects the unemployment rate to remain at 4.2% in December. If the actual unemployment rate is lower than expected, it indicates that the US job market is strong and the economic situation is good, which may prompt the Federal Reserve to adopt a more hawkish monetary policy, such as raising interest rates. In this case, funds may flow from risky assets such as cryptocurrencies to traditional financial markets, causing the price of the currency to fall.
On the contrary, if the unemployment rate is higher than expected, it may suggest that the US economy is facing downward pressure, and the Federal Reserve may adopt a more relaxed monetary policy, which is good for the cryptocurrency market.
At the same time, the market expects that the seasonally adjusted non-farm payrolls will increase by 160,000 in December, lower than the previous value of 227,000. If the actual data exceeds expectations, it means that employment growth exceeded expectations and the US economy performed well, which may trigger market concerns about the Fed's further tightening of monetary policy, thereby putting pressure on the cryptocurrency market. On the contrary, if the data is lower than expected, it may indicate a weak job market and insufficient momentum for economic recovery, which may prompt the Fed to maintain or adopt a looser monetary policy, bringing potential upward momentum to the cryptocurrency market.
At present, both the long and short sides of the market remain cautious and wait for the data to be released. It is foreseeable that the cryptocurrency market may usher in significant fluctuations after the data is released. Investors should pay close attention to the data release and formulate corresponding trading strategies in advance to cope with potential market risks.