Last night, the United States released its non-farm payroll data, which, as the market estimated, showed a decline in the job market. The number of new jobs added was only 54,000, far below the market expectation of 68,000 to 75,000. At the same time, the number of initial unemployment claims released was also slightly higher than expected. The data is favorable for interest rate cut expectations, so the three major U.S. stock indices all rose significantly. However, the cryptocurrency market, which has always been highly correlated with the U.S. stock market, is falling, leaving people puzzled.
The cryptocurrency market is falling while the U.S. stock market is experiencing positive news, mainly because there are reports indicating that Nasdaq will strengthen its scrutiny of listed companies' cryptocurrency investments. The reason for the enhanced scrutiny is that many of these 'microstrategy' companies are not transparent in their cryptocurrency investment activities, and it is apparent that many companies are raising funds from the public to buy cryptocurrencies to boost their stock prices. Nasdaq is concerned that such practices will increase risks for investors.
As soon as the news broke, most 'microstrategy' type companies saw their stock prices plummet, leading cryptocurrency investors to worry about potential impacts on cryptocurrencies. There are fears that new policies may force some companies to sell their cryptocurrencies, causing the cryptocurrency market to decline as well. In fact, this new regulatory requirement is beneficial for the cryptocurrency market in the long run as it prevents these companies from 'inflating' and leading to greater risks later. However, in the short term, there will definitely be some growing pains in the cryptocurrency market.
Tonight, the United States will release significant non-farm unemployment data. The last time data was released in August, it was a mess, causing both stocks and currencies to plummet. Therefore, the market is on guard for tonight's data, fearing it may also be disastrous. Attention is needed as there is a high chance of considerable market volatility tonight. Additionally, since it's Friday, there may be risk-averse behavior before the U.S. stock market opens, and the market may experience a correction. Therefore, be cautious and pay attention to positions, or wait for the trend to clarify before planning to enter the market.
"MICA Daily｜Why is the economic data good and U.S. stocks are rising, yet cryptocurrencies are falling?" This article was first published on (Blockcast).