Recently, there was an interesting development in US economic data — two key indicators are sending conflicting signals.

Specifically, non-farm employment surged past 64 million, far exceeding market expectations. But the unemployment rate, on the other hand, jumped to 4.6%, also higher than anticipated. This is a bit awkward — it seems like job opportunities are increasing, but at the same time, more people are unemployed. Isn’t that contradictory?

What does this mean for the crypto world?

In the short term, it might be quite challenging. Strong non-farm payroll data can easily lead the market to believe that the Federal Reserve will continue to tighten, which is usually not good for risk assets like cryptocurrencies. But on the flip side, the rising unemployment rate signals might slow down expectations of aggressive rate hikes. The market is swaying between these two forces.

How to respond? Here’s my take:

**Don’t overreact** — What does it mean when economic data conflicts? It actually indicates that the economic situation is complex. Relying on just one or two data points can’t determine whether it’s a bull or bear market. Market fluctuations are normal, and this kind of checks and balances can actually reduce the risk of a one-sided crash.

**Look at the long term** — If the Federal Reserve becomes more cautious because of the unemployment rate, that’s not necessarily a bad thing in the long run. The main market narrative remains unchanged.

**Don’t make drastic moves** — Now is neither the time to go all-in nor to clear your positions. For those heavily invested, hold onto core assets without hesitation. For those with lighter positions, you can take advantage of potential pullbacks to gradually build positions in assets you believe in. But definitely avoid chasing high at the peak of a trend.