Bitfinex: Interest rate cuts may support asset prices, but weak employment and high debt could exacerbate market volatility.

According to Mars Finance, Bitfinex released a new report on December 10th, stating that following recent weak US labor market data, the market expects the Federal Reserve to announce an interest rate cut today (December 10th). The current voluntary quit rate has fallen to approximately 1.8%, the lowest level since 2020, while the layoff rate is near a three-year high. This indicates that wage growth pressures are easing, providing a basis for a rate cut, which is a key driver for Bitcoin ($BTC) and other risk assets. Consumers are increasingly reliant on credit. Currently, the Consumer Price Index (CPI) is hovering between 2.5% and 2.7% year-on-year, still above the 2% policy target. Meanwhile, US credit card debt has exceeded $1.2 trillion, with an average interest rate exceeding 20%. Tightening household finances make the macroeconomic environment for risk assets more vulnerable. For traders, the coexistence of weak labor market data and rising credit usage means a cautious strategy is warranted. While a rate cut may support asset prices, the current state of weak growth and consumer tightness could still amplify the intensity of market shocks.