Non-farm payrolls in December exceed expectations, US stocks Take a Nosedive, BTC unexpectedly stands firm, is strong employment actually an illusion?

The addition of 256,000 non-farm jobs in the United States in December far exceeded market expectations, triggering concerns about the Fed's easing of rate cuts. All four major U.S. stock indices fell sharply, with the 10-year U.S. bond yield rising to 4.77%. As a result, BTC prices once plummeted to nearly $92,000, while Ethereum fell below $3,200. The latest employment data released by the U.S. Bureau of Labor Statistics last night showed that non-farm employment in the United States increased by 256,000, far exceeding the market's expected 164,000 and the previous value of 212,000, marking the largest increase in 9 months. The December unemployment rate also fell to 4.1%, lower than the expected and previous value of 4.2%. This unexpectedly strong employment report has reinforced expectations of the Fed slowing the pace of rate cuts, causing the U.S. dollar index to rise again, closing at 109.64. Both the U.S. stock and bond markets saw heavy selling pressure, with the 10-year U.S. bond yield surging to 4.77%. The four major U.S. indices all experienced price drops: the Dow Jones Industrial Average fell 1.63% (696.75 points) to close at 41,938.45 points, the Nasdaq Composite fell 1.63% (317.25 points) to close at 19,161.63 points, the S&P 500 fell 1.54% (91.21 points) to close at 5,827.04 points, and the Philadelphia Semiconductor Index fell 2.42% (124.88 points) to close at 5,037.47 points. BTC plummeted to $92,000. In response, BTC also fell 2.23% within 15 minutes of the data release, dropping to $92,206.02 around 11 p.m. last night. However, BTC then rebounded strongly to $95,836, temporarily reporting $94,538.86 before the deadline, with a small rise of 1.84% in the past 24 hours. The steady performance of BTC may be related to the current market's apparent digestion of strong employment data, the expectation of a more friendly regulatory environment under Trump's administration, and support from institutional investors. Despite the seemingly strong labor market, there are still some underlying risks. Data on unemployment claims show that layoffs in 2024 are low, but well-known companies such as BlackRock and Tyson Foods have announced plans for layoffs in 2025. A report from the senior executive training company Challenger, Gray & Christmas also shows that the number of job openings announced by companies in 2024 has dropped to the lowest level in nearly a decade. LPL Financial analyst Jeffrey Roach also stated that the rise in private sector employment in the United States in 2024 has significantly slowed, with the average monthly increase in employment dropping to 149,000, lower than 192,000 in 2023, and is expected to continue to decline in 2025. Although the December non-farm employment data shows an addition of 256,000 jobs and a slight decrease in the unemployment rate, it may not truly reflect a robust rise driven by short-term policies, such as the potential expulsion of large-scale illegal immigrants. Cointelegraph also reported today that the digital asset management firm Grayscale is optimistic about the future prospects of BTC. Despite current economic challenges, they believe that the U.S. presidential inauguration on January 20 could be a catalyst for the market. Analysts pointed out that with increased institutional investment and improved regulatory environment, BTC could reach new highs in 2025.