Labor costs are stagnant! The slowest growth rate in four years, has the market changed?
The freshly released data shows that U.S. labor costs in the third quarter have dropped to an annual growth rate of 3.5%, marking a four-year low. What does this mean? Simply put, the job market is really cooling down, companies are not hiring and are even laying off employees, and even workers are hesitant to switch jobs easily.
In my opinion, this is actually good news for the crypto circle! Why? If inflation is kept in check, the Federal Reserve will have more confidence to cut interest rates. Once the expectation of monetary easing comes, liquidity will inevitably flow into high-risk assets (like our Bitcoin and Ethereum).
Market impact: In the short term, the news is relatively neutral, but in the medium to long term, loose liquidity is the biggest fuel for the crypto market. Don't let the current fluctuations shake you out!
What should retail investors do? Don't panic, hold your spot positions firmly! Especially, a pullback is a great opportunity to accumulate in batches. Next, keep an eye on the Federal Reserve's movements; once the wind shifts, the market can explode.
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