The U.S. Department of Labor just dropped a data bomb—initial jobless claims plummeted to 216,000, the lowest level since mid-April, far exceeding market expectations. On the surface, the job market appears to be remarkably strong, but there are more complex games behind it: the divisions within the Fed regarding the interest rate decision in December have already come to light.
On one side are the better-than-expected labor data, while on the other side, inflation remains stubbornly sticky. The crux of the officials' debate is: does strong employment indicate a healthy economy or increased pressure for rate hikes? This uncertainty is a double-edged sword for the crypto market.
The current liquidity environment is already tight, and such data can easily trigger short-term volatility. However, thinking calmly, the stronger the data, the less likely the Fed is to take action - after all, no one wants to act rashly amid controversy. This just leaves a buffer for the market.
Real opportunities are often hidden in panic selling. When most people panic and exit the market due to unexpected data, it is the right time to reassess position allocation.
Two operational focuses:
First, keep a close eye on the Fed's interest rate meeting on December 17-18 and the subsequent meeting minutes; any change in wording could alter the short-term trend.
Second, position management must allow for flexibility. Don't go all in; at least keep 30% of your bullets to gradually acquire quality targets when the market experiences a big dump.
Volatility is not a disaster; it is a screening mechanism. Those who can withstand emotional interference will be able to take the initiative in the next market cycle.
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The U.S. Department of Labor just dropped a data bomb—initial jobless claims plummeted to 216,000, the lowest level since mid-April, far exceeding market expectations. On the surface, the job market appears to be remarkably strong, but there are more complex games behind it: the divisions within the Fed regarding the interest rate decision in December have already come to light.
On one side are the better-than-expected labor data, while on the other side, inflation remains stubbornly sticky. The crux of the officials' debate is: does strong employment indicate a healthy economy or increased pressure for rate hikes? This uncertainty is a double-edged sword for the crypto market.
The current liquidity environment is already tight, and such data can easily trigger short-term volatility. However, thinking calmly, the stronger the data, the less likely the Fed is to take action - after all, no one wants to act rashly amid controversy. This just leaves a buffer for the market.
Real opportunities are often hidden in panic selling. When most people panic and exit the market due to unexpected data, it is the right time to reassess position allocation.
Two operational focuses:
First, keep a close eye on the Fed's interest rate meeting on December 17-18 and the subsequent meeting minutes; any change in wording could alter the short-term trend.
Second, position management must allow for flexibility. Don't go all in; at least keep 30% of your bullets to gradually acquire quality targets when the market experiences a big dump.
Volatility is not a disaster; it is a screening mechanism. Those who can withstand emotional interference will be able to take the initiative in the next market cycle.