The Fed is currently facing the challenge of tightening interest rate policy, and the unexpected employment data has reduced the market's expectations for its interest rate cuts. The strong job market and wage growth may lead to a slow decline in inflation, making the Fed more focused on inflation control.

If the May inflation data remains strong, the probability of the Fed cutting interest rates this year will be further reduced.

This week's Fed's policy meeting (June 12-13) and the published economic forecast summary and interest rate dot plot will become the focus of the market.

The market generally expects that based on the strong performance of the current economic data, the Fed may only cut interest rates a limited number of times or not cut interest rates this year.

Last week's non-farm data exceeded expectations, but the unemployment rate rose, indicating that the Fed needs to find a balance between curbing inflation and maintaining economic heat. This economic environment may be one of the reasons why risky assets such as Bitcoin have fallen but to a limited extent.