The US Bureau of Labor Statistics released the latest employment data last (10th) night, showing that the US non-farm payrolls increased by 256,000 in December, far exceeding the market expectation of 164,000 and the previous value of 212,000, marking the largest increase in 9 months, and the unemployment rate in December fell to 4.1%, lower than the expected and previous value of 4.2%.

This unexpectedly strong employment report has consolidated the expectation of the Federal Reserve (Fed) slowing the pace of rate cuts, the US dollar index rose again, closing at 109.64. The US stock and bond markets were flooded with heavy selling pressure, with the 10-year US Treasury yield surging to 4.77%, and the four major US indices all fell sharply:

• The Dow Jones Industrial Average fell 1.63% (696.75 points), closing at 41,938.45 points
• The Nasdaq Composite fell 1.63% (317.25 points), closing at 19,161.63 points
• The S&P 500 Index fell 1.54% (91.21 points), closing at 5,827.04 points
• The Philadelphia Semiconductor Index fell 2.42% (124.88 points), closing at 5,037.47 points

Bitcoin Drops to 92,000 USD

Affected by this, BTC also fell 2.23% within 15 minutes after the data was released, and explored to $92,206.02 last night around 11 o'clock.

But subsequently, BTC strongly rebounded to $95,836, and was temporarily reported at $94,538.86 before the deadline, up 1.84% in the last 24 hours, and the selling pressure seems to be gradually weakening.

Ethereum Breaks Below 3,200 USD

The trend of Ethereum is similar to that of BTC, but the volatility is more intense. Ethereum plummeted 2.61% within 15 minutes after the data was released, and fell below $3,200 around 11 o'clock yesterday, reaching a low of $3,193.97. Afterwards, perhaps affected by the rebound of BTC, it also rebounded to $3,322.49, and was temporarily reported at $3,249.27 before the deadline, up 0.77% in the last 24 hours.

Hiring Numbers Announced by Enterprises in 2024 Reach Lowest Level in Nearly a Decade

The resilience of BTC may be related to the market's current digestion of the strong employment data, the expectation of a more friendly regulatory environment under the Trump administration, and the support of institutional investors.

And although the labor market appears strong, there are still some potential risks. Unemployment claims data shows that the number of layoffs in 2024 was relatively low, but well-known companies including BlackRock and Tyson Foods have already announced layoff plans for 2025. And a report by the executive training company Challenger, Gray & Christmas shows that the hiring numbers announced by enterprises in 2024 have reached the lowest level in nearly a decade.

LPL Financial analyst Jeffrey Roach also said that the growth of private sector employment in the US in 2024 has slowed significantly, with the average monthly new employment down to 149,000, lower than 192,000 in 2023, and is expected to continue to decline in 2025. Although the December non-farm payroll data showed an increase of 256,000 and a slight drop in the unemployment rate, which seems strong, this may be driven by short-term policies, such as potential large-scale deportation of illegal immigrants, rather than a true reflection of economic growth.

Cointelegraph also reported today that the digital asset management firm Grayscale is optimistic about the future prospects of BTC. Despite the current economic challenges, they believe the US presidential inauguration on January 20 could be a driving force for the market. Analysts point out that with the increase in institutional investment and the improvement of the regulatory environment, BTC may set a new high in 2025.