The price of Bitcoin against the US dollars, reaching over $100,000, on a screen at a cryptocurrency exchange store in Hong Kong, China, on Thursday, Dec. 5, 2024.
Paul Yeung | Bloomberg | Getty Images
U.S. stocks were relatively unchanged on Thursday following a record day for equities, while bitcoin also reached all-time highs.
The Dow Jones Industrial Average dipped 98 points, or 0.2%. The S&P 500 and Nasdaq Composite both slipped 0.1%.
Bitcoin traded more than 3% higher, breaking above $100,000 for the first time. The move led crypto-related stocks such as MicroStrategy and Coinbase respectively 0.7% and 3% higher.
Bullishness in crypto has previously translated into sharp gains for the Nasdaq Composite. However, this wasn’t the case on Thursday.
The three major averages saw solid gains in the previous session, posting record closes.
“The problem you have is that valuations are stretched across the board,” said Keeley Teton portfolio manager Brian Leonard in an interview with CNBC. “You’re sitting at records, but there’s not a lot of enthusiasm or euphoria. Historically, when the records happened, the valuations were more reasonable.”
Traders on Thursday looked ahead to key U.S. employment data on Friday. Economists polled by Dow Jones forecast the U.S. economy added 214,000 jobs in November.
This labor report could inform the Federal Reserve’s rate decision at its policy meeting later this month. On Wednesday, Fed Chair Jerome Powell said that the U.S. economy is strong enough for the Fed to move carefully on rate cuts.
“The labor market is better, and the downside risks appear to be less in the labor market,” he said. “Growth is definitely stronger than we thought, and inflation is coming [out] a little higher. So, the good news is that we can afford to be a little more cautious as we try to find neutral.”
