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US employment growth slows significantly, what is the outlook before 2025?
【ChainWen】The latest data from the US labor market shows clear signs of cooling. In 2025, 584,000 new jobs are expected to be added, averaging less than 50,000 per month, a stark contrast to the momentum in 2024—2 million new jobs were added last year, with an average of 168,000 per month.
What does this turning point mean? A significant slowdown in employment growth is often a signal of economic cycle adjustment. For the crypto market, the strength or weakness of the US labor market directly influences the Federal Reserve’s subsequent monetary policy stance, thereby affecting the entire asset allocation landscape. Weak employment data typically raises expectations for rate cuts, which could be positive for risk assets—including cryptocurrencies. However, the market’s short-term reaction will also depend on how specific inflation data and the Federal Reserve’s attitude evolve.
The expectation of interest rate cuts is rising, but I still feel a bit uneasy. Who knows what tricks the Federal Reserve will play?
With such poor employment, logically the crypto market should rise... Let's wait and see the inflation data first.