Non-farm employment and unemployment rate weaken, expectations for interest rate cuts rise in September - the crypto market may welcome favourable information.

The latest data on the US non-farm employment and unemployment rate shows that the job market is not as strong: new jobs added fell short of expectations, and the unemployment rate slightly increased. In simple terms, the employment situation in the US is not very optimistic. With this data coming out, the market's confidence in the Federal Reserve cutting interest rates in September has increased.

Over the past two years, the Federal Reserve has raised interest rates, keeping them at a high level, which has suppressed inflation but also made companies more cautious about hiring, leading to a decrease in economic vitality. Now, signs of weakness are beginning to show in the job market, and there is a general consensus that if the Federal Reserve continues to maintain high interest rates, it could "crush" the economy, making the probability of interest rate cuts increasingly likely.

What does this mean for the crypto market?
The expectation of interest rate cuts is usually Favourable Information for crypto assets:
1. The US dollar is weakening, and funds are seeking new avenues.
Interest rate cuts often weaken the US dollar index, leading investors to seek inflation-resistant and growth-oriented assets. Cryptocurrencies like Bitcoin naturally tend to be favored in such an environment.
2. Liquidity is recovering, risk appetite is increasing.
During periods of high interest rates, funds prefer low-risk assets such as deposits and bonds; however, once interest rates are lowered, money in the market becomes more "active," and investors are more willing to enter the game for high-risk assets, with the crypto market likely to benefit first.
3. Historical Experience: Policy shifts often bring market trends
In the past few rounds of easing cycles, Bitcoin has mostly been able to experience a wave of increase. Especially if there is indeed a rate cut in September, it may become an important signal for market funds to enter.

However, it should also be noted that short-term fluctuations will still be very severe. Although weak employment brings expectations of loosening, it also indicates that there is downward pressure on the economy. If concerns about an economic recession intensify, market risk sentiment will still fluctuate.

Summary
The recent non-farm payroll and unemployment rate data have boosted the market's confidence in the Federal Reserve's rate cut in September, which is generally favourable information for Bitcoin and other encryption assets. Moving forward, the crypto market may enter a phase of "warming sentiment + capital attention", but investors still need to pay attention to volatility and avoid blindly chasing high prices.
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