US employment slowdown triggers chain reactions: The Federal Reserve may accelerate rate cuts, and crypto assets face a re-pricing window

2026-01-06 07:14:18

【Blockchain Rhythm】Latest data shows that the US labor market is undergoing a structural shift. Unemployment rate, resignation rate, and wage growth are all declining simultaneously, which is not a short-term fluctuation but a sign of genuine demand slowdown.

The key point is that even if the US economy has not yet entered a recession, the Federal Reserve is likely to be forced to implement more aggressive rate cuts than the market currently expects over the next 12 to 24 months to avoid overly tightening policies that could harm the economy. In other words, the magnitude and speed of rate cuts may exceed expectations.

What will this bring? The pace of real interest rate decline will accelerate, and the US dollar will inevitably face medium-term pressure. Once the dollar’s depreciation trend is established, capital will instinctively seek two types of assets: one is commodities that can resist inflation (gold being the most typical), and the other is alternative assets that can hedge currency risk (which is precisely the opportunity point in the crypto market).

Gold thus gains solid structural support, and this logic is gradually spreading into the crypto space. Against the backdrop of weak employment data and PMI below expectations, the market has already started pricing in easing policies in advance. In the short term, if PMI continues to fall below expectations, risk aversion will quickly intensify, gold may rapidly rally, and the crypto market will also experience greater volatility.

In the medium term, once the easing narrative is confirmed, the valuation recovery space for risk assets will open up. But attention should also be paid to the repeated switching of funds between US dollar liquidity and high-volatility assets — this could create some trading traps.

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MEVvictim

· 01-07 09:55

Damn, are they cutting interest rates again? What should I do with my USD? The rate cut is coming, time to buy the dip, brother. The Federal Reserve is about to wave its magic wand again... Wait, is this really a rate cut or just another bluff? Gold prices are rising, should cryptocurrencies follow suit? There's something to it. If the unemployment rate continues like this, is there any hope for the crypto world? Feels like another wave of wiping out the little guys... Is the dollar about to die? Does that mean my current holdings are a correct bet? I've heard about rate cuts for a long time, but only now are many people reacting. If this time's surprise rate cut exceeds expectations, can it really change the situation?

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PhantomHunter

· 01-06 20:45

Wait, does an interest rate cut exceeding expectations really mean anything? Can it truly save the crypto world?

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CryptoGoldmine

· 01-06 07:38

The expectation of interest rate cuts is indeed worth paying attention to, but I am more concerned about how long the computing power return ratio can sustain during this cycle. The depreciation of the US dollar still puts pressure on the cost side of mining machines, and the short-term ROI may not be as optimistic as imagined. Looking at the mining data from the past three months, the difficulty adjustment cycle is still high, and we need to wait for a second confirmation before taking a heavy position. Speaking of which, the logic of gold and crypto cannot be directly applied; one is a hedge, and the other is speculation, so their nature is still different. Rather than chasing the hot trends, it’s better to focus on the underlying efficiency of the computing power network, which is the core of long-term returns.

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WhaleStalker

· 01-06 07:36

The Fed's rate cut is here, BTC should take off again, right? Rate cuts = printing money = rising coin prices, we've played this logic many times before. When the dollar depreciates, it needs an outlet; gold eats the meat, cryptocurrencies drink the soup... But on the other hand, is it really that simple this time? It feels like someone always takes the opposite position each time. Let's wait and see; holding coins and waiting for the rain is all that's needed anyway.

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CoffeeOnChain

· 01-06 07:21

With the start of an interest rate cut cycle, cryptocurrencies are set to turn around The market is finally going to reprice, it was about time The depreciation of the US dollar is a certainty, now just waiting to buy the dip Instead of watching gold, it's better to directly allocate to alternative assets This is truly an opportunity, miss it and you'll have to wait another four years

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quiet_lurker

· 01-06 07:14

The Fed's rate cut expectations are really coming this time. Crypto bulls, wake up! --- The rate cut has been a false alarm so many times. Is this time for real? --- When employment data deteriorates, no one can escape. --- Dollar depreciation and gold taking off—can the crypto market catch this train? The question is --- Wait, this logic sounds good, but why is it so hard to actually implement? --- Crypto hedges against currency risk, that's true—it's the fastest to fall when prices rise. --- A rate cut plan over 12 to 24 months, probably another set of excuses by then. --- If the Fed really aggressively cuts rates, BTC should have already taken off. Why is it still here? --- I've seen many double kills of gold and crypto; don't get caught being cut. --- This time, the fundamentals are indeed favorable, but those who wait for the good news to materialize are already eaten.

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