December ADP employment data missed expectations, with the net new jobs actually being negative -32,000. It was originally expected to show positive growth, but the data turned out to be the opposite. This data doesn't look good for the Federal Reserve.

Once the labor market indeed weakens, the Fed's room to continue raising interest rates will be limited. As a result, market expectations for rate cuts will likely be pushed higher. If liquidity truly starts to loosen and flow back, it will be beneficial for the crypto market in the long run.

But here’s a cold shower—don’t jump to conclusions based on a single data point. ADP is just a leading indicator; the real key is the non-farm payroll report on Friday. If that data turns positive, market sentiment could shift 180 degrees in a matter of minutes. In the fast-moving crypto world, what’s good news today can become yesterday’s news tomorrow.

How to operate? My suggestions are:

**Don’t rush to all-in**. Wait for the actual release of Friday’s non-farm data to reduce uncertainty. The market fears the unknown the most.

**Keep an eye on BTC and ETH performance**. If they can stabilize or even rebound on the back of this news, it indicates that market sentiment is indeed recovering.

**Try small positions**. Keep some powder dry; a big move won’t happen all at once in the short term. Use small positions to test the waters—if there’s an opportunity, it won’t slip away.

The long-term logic is clear: worse employment data → stronger rate cut expectations → positive for crypto. But for now, expect mainly volatility in the next few days. The true direction will only become clear after Friday. If you want to grasp the specific impact of the non-farm report and position accordingly, you need to pay close attention to market movements. When there’s a wind, timely review and analysis are the keys.