When U.S. non-farm payroll data underperforms expectations, it often indicates that economic growth momentum is weakening. This signal typically prompts the Federal Reserve to maintain an accommodative stance or advance a rate-cut cycle, leading to a decline in demand for the dollar in the market and increased liquidity.

Cryptocurrencies are particularly sensitive to such macroeconomic shifts. How exactly will they change?

**In the short term, capital inflows become a common phenomenon.** Once the expectation of dollar depreciation takes hold, digital assets like Bitcoin and Ethereum, which are valued in dollars, become cheaper and more attractive. Many traders seize this opportunity to buy the dip.

**Risk appetite also tends to rebound.** As the market begins to believe that the Federal Reserve is truly shifting its stance, this expectation drives traders to re-engage with high-yield, high-volatility assets. Cryptocurrencies are a typical example of such risk assets and often attract buy orders chasing returns.

**Another logical point cannot be ignored.** If the economy is weak while prices are still rising (a sign of stagflation), some institutional and individual investors may turn their attention to cryptocurrencies as a hedge against inflation. Once this demand for allocation emerges, it can also support the market.

Overall, the chain of weak economic data → Fed signaling → improved liquidity → rebound in risk assets has a fairly direct impact on the crypto market.