Understand this non-farm payroll report, and you'll know why BTC and ETH are being hammered!

Brothers, many people watched BTC and ETH plunge last night, looking confused:

Haven't they already fallen so much?
Aren't they already oversold?
Why are they still dropping?

The real reason is hidden in the newly released non-farm payroll data!

This time, the U.S. added 172k new jobs in May!

While the market expected only 125k!

Simply put:

The U.S. economy is much stronger than everyone thought!

Here's the question:

What does a strong economy mean?

It means the Federal Reserve has no urgent need to cut interest rates!

Expectations of rate cuts decrease, high interest rates last longer, and market funding costs stay elevated.

And what does the crypto market rely on the most?

Liquidity!

The more money there is, the crazier BTC and ETH rise;
The less money, the easier risk assets are to be sold off.

So, when the non-farm payroll data was released, the market's first reaction was:

Rate cuts will be delayed!

As a result, the dollar surged, risk assets came under collective pressure, and BTC and ETH faced a new wave of selling.

More importantly, the current position is critical.

BTC and ETH are already in a weak structure.

Longs have been continuously liquidated, market confidence is fragile.

At such times, any negative news will be amplified infinitely.

Many retail investors' biggest mistake is:

Seeing the drop so much and thinking it's cheap.

But the market never necessarily rises just because it has fallen enough.

Until macro pressure eases, oversold conditions can become even more oversold.

Remember one thing:

In a weak market, don’t guess the bottom; in a strong market, don’t try to catch the top.

The most important thing right now is not how much money you make, but surviving first.

My simple approach:

Light positions and observe, control risks;
Don’t chase rebounds, don’t heavily buy the dip;
Wait for liquidity to recover, then consider entering.

Here's a mantra for everyone:

Non-farm payrolls exceeding expectations = delayed rate cuts = tightening liquidity = pressure on BTC and ETH.

The market is always there; bullets must be saved for the most critical moments.