Yesterday's spill on the market made many disappointed.

Someone sarcastically said, “Well, well, your native has begun.”

Panic, fear, and sometimes even gloating. But let's find out what really happened and why the market is pouring on strong labor market data.

What happened?

The data on the US labor market surprised many: the number of vacancies was higher than expected.

The labor market looks strong, companies are hiring, and unemployment remains low. It seems to be positive news, but they literally “drowned” stock indexes and the crypt.

Why is “good news— “bad news"?

The fact is that a strong labor market can increase inflationary pressures.

When people have more jobs and salaries rise, consumption increases, which means that inflation can go up.

And this, in turn, means that the Federal Reserve System (FRS) may continue to raise interest rates.

Rate hike hits markets:

1. Bonds are becoming more attractive: Investors are moving away from stocks and cryptocurrencies to more reliable fixed income instruments.

2. Debt is becoming more expensive: Companies, especially technology companies that depend on borrowed capital, are suffering due to the rising cost of debt servicing.

3. Risk-assets under pressure: Cryptocurrency, like the stock market, is considered a high-risk asset. In the context of tightening monetary policy, demand for it is decreasing.

And what now? Is the Bull Run really canceled?

Don't jump to conclusions. Yes, the market reacted to the data with a decline, but this does not mean that the global growth cycle is over.

We are currently in a phase of uncertainty, where any news about the Fed's actions (or its expectations) will rock the market.

The main thing to remember is:

1. Short-term spills do not cancel out long-term trends.

2. Investors often overreact to the news, creating more fear than necessary.

3. The bitcoin market is cyclical, and such “strength tests" occur regularly.

Your actions:

• Calm down and analyze. If the strategy is based on a long—term perspective, stick to it.

• Straits are not a disaster, but an opportunity.

• Understand the connection: strong labor market → inflation risks → rising interest rates → short-term market pressure.

In 2019, people also wrote that “bitcoin is dead,“ "there will be no growth.” And then we all saw 2021. Today's market reaction is emotion, but emotion never defeats strategy.

What do you think? Is this strait a chance or a reason to panic? 🔥

P.S. Additional unemployment data will be released on Friday, so keep the buckets 🪣