Tonight, the non-farm payroll data is about to be released, and many people are not aware of whether this data is bad or good; they only know that there will be such a data announcement.
So I will briefly explain the impact of this non-farm payroll data on the global financial sector.
First, we need to understand what non-farm payroll data is. It is an economic indicator released monthly by the U.S. that measures the growth and decline of employment in the domestic non-farm sector.
Non-farm payroll data is a key indicator that stock markets must pay attention to, mainly affecting the U.S. dollar and traditional financial markets, while its impact on the cryptocurrency market is indirect.
The specific effects are as follows:
First, market sentiment. Non-farm payroll data is often used as an indicator of economic health. Better-than-expected results indicate a healthy economy, leading to increased investment, which usually manifests as a small surge in the stock market. If the data is poor, investors will reduce their investments and turn to safe-haven assets like gold and Bitcoin. Generally speaking, good data leads to rising stock markets, and cryptocurrencies follow suit, and vice versa.
Second, the quality of non-farm payroll data often impacts fluctuations in the U.S. dollar exchange rate, and stablecoins in the cryptocurrency market are typically pegged to the dollar at a 1:1 ratio, which directly affects the investment costs of cryptocurrencies.
An increase in the dollar may lead to a decline in cryptocurrencies, as their relationship is often inversely correlated.
Third, non-farm payroll data can exacerbate the volatility of cryptocurrencies. In a short period, there may be a concentrated emotional outbreak among investors, and the fluctuations of cryptocurrencies can be very severe.
Fourth, non-farm payroll data affects the U.S. market, and the U.S. is a global hegemon. Under the dollar's hegemonic economy, it impacts the global financial market, further influencing the rise and fall of cryptocurrencies.
As for tonight, the release of non-farm payroll data will provide a specific direction, and I will inform you of the specific position for building a position internally.
