Today, the Bitcoin price surged again due to the latest US GDP data (United States) and job data surpassing the expectations of the market, according to which the economy rose by 1.3% in Q1.
It was observed that economic growth in the U.S. occurred despite the global economic crises. The price of crude has continued to drop, primarily because of competition created by renewable energy sources and shale oil/gas extraction. As a result, this will lead to a reduced GDP in other sectors that rely on the oil industry. This is evidenced by the slowing machinery industry and related services.
Market Sentiment and Inflation Concerns
That being said, the market was anxiously awaiting the release of U.S. GDP for today and weekly jobless claims figures, followed by tomorrow’s U.S. PCE inflation figures.
According to new statistics from the U.S. Bureau of Economic Analysis at the Labor Department, the most recent information on America’s GDP was published on December 19. These numbers indicate that during April 2023 the U.S. economic conditions have risen due to increased market sentiment following an increase in consumer spending. However, it is worth noting that the GDP growth rate slowed down sharply during the first three months’ suggesting that it may not be sustainable for longer as some might thought”.
The market was expecting a 1.2% growth in the first quarter according to the first revision of the U.S. GDP data. This is likely to be good news for investors because it means that the economy has moved beyond what Wall Street expected. Therefore, a massive selloff has been seen in the broader financial market including the crypto market due to the cooling GDP data, which has also dampened the investors’ sentiment.
The high interest rates that the U.S. Federal Reserve has maintained because inflation exceeded its 2% target have kept many investors out of the market, reducing crypto market sentiment in the meantime due to macroeconomic fears including inflation.
Bitcoin’s Resilience: U.S. GDP Data & Bitcoin Price Analysis
The talk in economy indicates that the issue of the latest GDP data has had an impact on how people view the stock exchange because of its influence in increasing Bitcoin’s value. More interestingly, the current widespread crypto market has undergone unstable dealings today in anticipation of the big economic release whereby which has made many investors halt in making any decisions.
After the United States’ Gross Domestic Product (GDP) figures were found to be better than expected, it is anticipated that the cryptocurrency industry plus wider economy would be closely monitoring future U.S. Personal Consumption Expenditure (PCE) inflation statistics. Per the CME FedWatch Tool, there is nearly 99% certainty that the Federal Reserve will not hike its short-term rates at its meeting scheduled for June 12th.
When the U.S. GDP data was revised, the U.S. 10-year Bond Yield decreased by 0.99% to $4.577, and the U.S. Dollar Index Futures also fell by 0.25% to $104.770.
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