Have you ever thought about the truth behind these numbers when the recent US Non-farm Payrolls (NFP) data was released? It actually just shows how many new job opportunities were created in the United States last month.

What happens when the data far exceeds expectations? Firstly, it indicates that the economy is running well and there is sufficient growth momentum. However, hidden risks lurk within this—strong growth is often accompanied by rising inflation pressures, and the likelihood of the central bank raising interest rates also increases.

The chain reaction in the market is usually as follows: the US dollar starts to strengthen, and gold promptly falls. Why? Because expectations of interest rate hikes will push up US Treasury yields, increasing the opportunity cost of holding dollars, making the dollar more attractive. Gold, as a hedging asset, actually loses its appeal during an interest rate hike cycle.

This impact is significant for the cryptocurrency market. Once the expectation for interest rate hikes heats up, risk assets will come under overall pressure, and mainstream coins, including Bitcoin and Ethereum, may face selling pressure. If U.S. stocks also decline, the destructive power of the two markets will be compounded. Therefore, the release of macro data such as US Non-farm Payrolls (NFP) is often a key point that the crypto community needs to pay special attention to.