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

Price corrections persisted in the broader cryptocurrency market, despite equity indices reaching new highs following the release of U.S. non-farm payrolls data.

Friday’s U.S. non-farm payrolls (NFP) data showed equity indices testing new highs, but this failed to revive the cryptocurrency market, which saw its market cap drop by over 5% in the past 24 hours.

The NFP reading for June surpassed expectations, with an increase of 206,000 jobs versus the forecasted 190,000, according to the U.S. Bureau of Labor Statistics. However, unemployment rose slightly to 4.1% in June, marking the first time since November 2021 that it has exceeded the 4% threshold.

Equity indices gain following NFP release Treasury yields declined along with the dollar index, as bond traders responded to the NFP data. In contrast, stock futures edged higher, testing new highs. Dow Jones Industrial Average futures increased by 0.033%, and S&P 500 futures climbed by 0.013% in pre-market trading.

Major European equity indices were also in the green during Friday’s trading. The European Stoxx 600 index rose by 2.49 points to 519.33. However, London’s FTSE 100 fell slightly, down 12.07 points to 8,229.19, amid a landslide victory for the UK’s Labour Party.

Bitcoin’s price continued to decline, dropping below the $56,000 mark during early morning trading on Friday. It 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 indicated a 71% chance of a rate cut in September before the NFP release. Following the data, the September odds remained unchanged.