#BinanceABCs 🔥US unemployment rate soars to 4.6%, is the Federal Reserve really about to turn?

Last night’s non-farm payroll data caused a sell-off—unemployment at 4.6%, surpassing expectations and jumping higher; although job growth is still decent, the market reacted even more aggressively.

Why is everyone watching the unemployment rate? Simply put, it’s a leading indicator of liquidity changes.

This data is not just an economic indicator; it signals a potential shift in Federal Reserve policy. Once the labor market starts to weaken, the Fed’s focus shifts from "controlling inflation" to "stabilizing growth and preventing recession."

Looking back from 2008 to now, every time the unemployment rate breaks through the long-term trend line, the Fed’s approach has been almost the same—three main steps:

First, cut interest rates to inject liquidity into the market; second, expand the balance sheet through QE to flood the financial system with systemic liquidity; third, preemptively shift policy expectations toward easing to pave the way for risk assets.

Next, we may go through a period of deleveraging and risk re-pricing, which will be painful in the short term; but once liquidity expectations truly bottom out and rebound, $BTC usually leads the way, sparking a new wave of significant gains.