S&P 500 Up 15% YTD as Bitcoin Nears $94K, Correlation Jumps

The S&P 500 traded at 6,966.28, up 44.82 points at close on 9th Jan, marking a fresh all-time high and extending a strong start to the year. Major U.S. stock indexes ended Friday’s session sharply higher, with the S&P 500 and Dow Jones Industrial Average securing record closes. 

Source: CoinCodex

The Nasdaq Composite joined the rally, reinforcing a broad-based move into risk assets. What triggered the surge? Investors reacted to a softer labor market signal paired with falling unemployment rate data, as NFP data reported.

By the closing bell, the Nasdaq gained 0.8%, the S&P 500 advanced 0.7%, and the Dow climbed 0.5%. Over the week, the Dow led with a 2.3% rise, while the Nasdaq added 1.9% and the S&P 500 increased 1.6%. Equity momentum strengthened as traders adjusted expectations around growth and monetary conditions.

Jobs Data Reshapes Market Expectations

Fresh data from the Bureau of Labor Statistics guided Friday’s price action. The U.S. economy added 50,000 nonfarm jobs in December, missing the 73,000 consensus estimate and slowing from November’s revised 56,000 gain. However, the unemployment rate fell to 4.4% from 4.6%, beating forecasts that pointed to a 4.5% reading.

This mix created an interesting signal. Slower hiring suggested cooling demand for labor, while the lower unemployment rate indicated resilience in the workforce. Markets interpreted the combination as supportive of stable growth without overheating. 

That balance often matters for assets sensitive to liquidity trends, including cryptocurrencies. Could this explain the renewed attention on digital assets?

Bond Yields and Liquidity Signals

The 10-year Treasury yield stood near 4.17% at 4 p.m. ET, showing little movement from the previous session. Bond markets sent a message of calm rather than stress. When yields hold steady, borrowing conditions tend to remain predictable, which helps sustain risk appetite across equities and crypto markets alike.

Crypto traders often track Treasury yields because shifts in rates influence capital flows. Lower or stable yields can reduce the appeal of fixed-income returns, prompting some investors to explore alternatives such as Bitcoin and other digital assets. Equity strength combined with steady yields often aligns with periods of increased activity in crypto trading.

Policy Uncertainty Lingers in the Background

Trade policy also remained in focus. The U.S. Supreme Court did not rule Friday on the legality of former President Donald Trump’s use of emergency powers to impose tariffs. The court could eventually uphold the “Liberation Day” tariffs announced in April or strike them down entirely. Either outcome could clarify a trade framework that has confused markets for months.

Earlier tariff announcements shocked investors before markets recovered. Clearer policy direction could reduce uncertainty across global markets. Crypto markets, which react quickly to macro headlines, often reflect changes in sentiment tied to trade and geopolitical risk.

How Crypto Tracks Equity Momentum

Crypto markets frequently move in response to broader financial conditions rather than isolated events. Strong equity performance can signal confidence in growth and liquidity, which tends to support digital assets. At the same time, crypto maintains its own drivers, including network activity and regulatory developments.

As Wall Street celebrates a new S&P 500 milestone, crypto traders watch closely. Does the rally signal a sustained risk-on phase, or does it mark a pause before the next shift? Market data in the coming sessions will offer the answer.