#GateSpringFestivalHorseRacingEvent #NFPBeatsExpectations

When Non-Farm Payrolls (NFP) data exceeds expectations, it means the US job market is stronger than markets anticipated. Typically, this has two effects:

- For traditional markets: A strong NFP report can strengthen the US dollar and increase expectations of a tighter Fed policy (higher interest rates or a postponement of rate cuts).

- For risky assets like cryptocurrencies: If the market is expecting rate cuts and these expectations are postponed, it can put short-term pressure on BTC and other cryptocurrencies, as higher interest rates generally mean less liquidity and tighter financial conditions.

However, sometimes the reaction depends on the overall risk perception and whether other signals (such as falling inflation) are present. Therefore, you can see rapid volatility in cryptocurrencies after NFP surprises; sometimes a sharp drop with expectations of a tighter Fed policy, or a rapid recovery if the market decides that growth is good.

If there are significant crypto-specific news or flows, cryptocurrencies can become independent of macro events! In any case, maintain tight risk management against increased volatility.
$BTC ‌