Bitcoin and Altcoin Prices Drop After the US Published Solid Nonfarm Payroll (NFP) Data

It was a sea of red in the crypto industry on Friday after Bitcoin price dropped below the crucial support of $55,000.

Bitcoin price dropped below the crucial support of $55,000 on Friday as the sea of red engulfed the crypto industry.

Most altcoins like Ethena (ENA), Solana (SOL), and EOS dropped by over 10% in the past 24 hours. The total market cap of all coins dropped from the year-to-date high of $2.7 trillion to $2 trillion.

Ethena vs Solana vs EOS prices

The falling crypto prices received another blow when the US published another solid nonfarm payroll (NFP) data. According to the Bureau of Labor Statistics (BLS), the economy added 206,000 jobs in June, higher than the expected increase of 191,000.

The figure was also higher than the ADP report on Wednesday, which showed that the private sector added 150,000 jobs in July.

The report also showed that wage growth remained steady in June as the average hourly earnings growth rose by 3.9% YoY). On the negative side, the unemployment rate rose from 4.0% in May to 4.1% in June.

These numbers mean that the labor market is doing well since it has added over 1.57 million jobs this year.

Implications for Ethena, Solana, and EOS prices

These jobs numbers mean that the Federal Reserve will not be in a hurry to start cutting interest rates since inflation has mostly held steady this year. The most recent data showed that the headline Consumer Price Index (CPI) slowed to 3.3% in May while the Personal Consumption Expenditure (PCE) remained at 2.5%.

In a statement this week, Jerome Powell, the Fed Chair, noted that the bank wants more evidence that inflation was falling. Minutes released this week showed that the committee anticipates one rate cut this year, possibly in December.

Therefore, the hawkish Federal Reserve will likely put more pressure on risk assets like Ethena, Solana, EOS, and Bitcoin prices.