US unemployment rate rises, prompting a 1-point rate cut in December! Grayscale predicts that the increase in encryption will continue until 2025.

After experiencing strikes and hurricanes in October, the U.S. non-farm payrolls returned to normal in November, reaching a higher-than-expected 227,000 jobs added, but the unemployment rate also rose slightly from the previous month's 4.1% to 4.2%. Experts predict that the data for November is mixed, but with the increase in the unemployment rate, the probability of the Fed cutting interest rates by 1 percentage point in December has significantly increased. The U.S. Bureau of Labor Statistics announced yesterday evening that the U.S. added 227,000 non-farm jobs in November, exceeding the market's expectation of 202,000 jobs; the previous value was also revised significantly upward from 12,000 to 36,000; however, the unemployment rate in November also rose from the previous month's 4.1% to 4.2%. The probability of a 1 percentage point interest rate cut this month has risen to 85.1%. Although the non-farm employment and unemployment rate data for November are mixed, the slight increase in the unemployment rate has led the market to expect the Fed to implement an interest rate cut at this month's FOMC meeting. Renowned economist Mohamed El-Erian described the November employment data as "somewhat strong, but not too strong," paving the way for an interest rate cut in December: Although hourly wage growth remains strong, the rise in the unemployment rate allows the Fed to comfortably cut interest rates by one percentage point. According to the CME FedWatch Tool, the market's expectation of a 1 percentage point interest rate cut this month has climbed to 85.1%, compared to the previous day's midday expectation of 71.8%, marking an increase of 13.3%; the probability of no rate cut has decreased to 14.9%. Fed officials: If inflation surges again, the Fed is prepared to raise interest rates again. In addition, Mary Daly, President of the Federal Reserve Bank of San Francisco, mentioned in a speech after the release of the non-farm data yesterday that the current labor market remains strong, but the Fed faces many economic uncertainties in policy-making, especially in balancing the labor market and inflation. Daly stated: If inflation accelerates again, the Fed will be ready to raise interest rates at any time. Furthermore, Daly also mentioned that the Fed has readjusted its policy through interest rate cuts, and the current interest rate is at a "roughly appropriate" level. Therefore, she supports taking gradual measures and cautiously facing upcoming economic changes: The degree of policy coordination among global Central Banks has significantly decreased, and countries' responses are no longer as consistent as before, further increasing economic uncertainties. There are also no clear answers regarding the return of inflation to the 2% level and the sustainability of the labor market. Grayscale: Encryption market rally to continue into next year. On the other hand, according to Cointelegraph, Zach Pandl, Research Director at Grayscale Investments, stated that yesterday's employment data may become a reason for the Fed to cut interest rates, impacting other currencies including BTC: Yesterday's employment report is likely to further consolidate the reasons for the Fed to cut interest rates again at the upcoming meeting. Under unchanged conditions, an official interest rate cut usually puts pressure on the value of the U.S. dollar, as well as other currencies, including BTC. Pandl continued: Although the BTC price fell below $100,000 yesterday, Grayscale still believes that the cryptocurrency rally is expected to continue into next year.