Last night, after the release of US non-farm payroll data, Bitcoin plummeted. The $87,000 level was instantly broken, and the market descended into chaos — this is not just a fluctuation in numbers, but a direct reaction of the entire crypto market to traditional economic signals.

The data appears quite strong

In November, non-farm employment increased by 64,000, surpassing the market expectation of 50,000. At first glance, the labor market still seems quite resilient. But the problem lies here — the numbers look good, yet the underlying logic begins to flash red.

But hidden troubles are even greater

The unemployment rate suddenly surged to 4.6%, not only higher than the expected 4.4%, but also reaching the highest level since September 2021. This is the real warning sign.

Looking further back, October’s non-farm payroll data is even more alarming — non-farm employment plummeted by 105,000. And the initial market estimate? Only a decline of 25,000. This means the revision was four times larger, enough to show how volatile the employment market really is.

Contradictory signals shatter market confidence

Employment numbers are rising, but the unemployment rate is soaring — what does this phenomenon reveal? More people are entering the labor market seeking jobs, but job allocation is misaligned. A rift has formed between labor demand and job seekers’ willingness. This "divided signal" causes the market to fall into confusion — unable to clearly see whether the economy is truly in recession or to predict the future direction of the employment market.

Bitcoin’s flash crash response

Within 15 minutes of the data release, Bitcoin repeatedly broke through multiple support levels, with the lowest dropping below $87,000. Mainstream cryptocurrencies like ETH and DOGE also followed suit. This shows that the impact of traditional economic data on crypto assets is strengthening significantly, and changes in Federal Reserve policy expectations have become a sword hanging over the market.

The confrontation of two viewpoints

Bulls still insist: the employment data is relatively strong, the economy may not be heading into recession, and the current decline is just a short-term emotional release with room for rebound.

Bears are ringing the alarm: the jump in the unemployment rate exposes the real cracks in the real economy. In a high-interest-rate environment, risk assets like Bitcoin will continue to be under pressure, and bottom-fishing requires a high risk tolerance.

What should we do now? Should we buy on the dip or stay on the sidelines? What is the market really hinting at behind this data game?