$BTC Bitcoin and the US Non-Farm Payroll Report
Bitcoin often reacts strongly to the US Non-Farm Payroll (NFP) report, even though it is not part of the US economy. The reason is simple: liquidity and interest rates.
A strong NFP report signals a strong US economy. This increases the chances of higher interest rates or rates staying higher for longer. Higher rates strengthen the US dollar and reduce liquidity, which usually puts pressure on Bitcoin. In these conditions, BTC struggles to sustain rallies.
A weak NFP report suggests economic slowdown. This increases expectations of rate cuts, weakens the dollar, and improves risk appetite. Bitcoin often benefits from this environment.
Short-term price spikes around NFP are common, but most of them are driven by volatility and liquidations, not real trend changes. Trading Bitcoin during NFP without a macro view and risk control is a fast way to lose capital.
Bitcoin may be decentralized, but it still trades inside a global financial system. Ignoring NFP means ignoring one of the key drivers of BTC volatility.$BTC
