Crypto price correction continues despite equity indices gaining on robust US non-farm payrolls data

Bitget App

Trade smarter

The Block2024/07/05 13:49

By:Brian McGleenon

Price corrections continued in the wider cryptocurrency market, despite equity indices testing new highs following the release of U.S. non-farm payrolls data.

Friday's U.S. non-farm payrolls (NFP) data saw equity indices test new highs, but the reading failed to resuscitate the cryptocurrency market, which has seen its market cap fall by over 5% in the past 24 hours.

The NFP reading for June came in better than expected, up 206,000 jobs versus a forecast 190,000 increase, according to the U.S. Bureau of Labour Statistics. Unemployment rose slightly to 4.1% in June, which is the first time since November 2021 it has risen above the 4% mark.

Equity indices gain following NFP release

Treasury yields moved lower along with the dollar index, as bond traders reacted to today's NFP data. In contrast, stock futures ticked higher, testing new highs. Dow Jones Industrial Average futures increased 0.033% and SP 500 futures climbed 0.013% in pre-market trading.

Meanwhile, major European equity indices were green during Friday trading. The European Stoxx 600 index increased 2.49 points to 519.33. In London, the FTSE 100 fell slightly, down 12.07 points to 8,229.19, amid a landslide victory for the UK's Labour Party .

However, bitcoin’s price has continued to retrace and slid below the $56,000 mark during early morning trading on Friday. Its price decreased by around 3% in the past 24 hours, sitting at $55,500 at 9:15 a.m. ET, according to The Block’s price page .

Meanwhile, the Chicago Mercantile Exchange (CME) FedWatch tool , had a 71% chance of a rate cut in September before today's reading. After today's reading, the September odds have remained unchanged.

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

PoolX: Locked for new tokens.

APR up to 10%. Always on, always get airdrop.

Lock now!