The persistent negativity in cryptocurrencies continues as Bitcoin maintains closures below $40,000. Today’s significant economic data heightened the importance of U.S. figures, which had previously been overshadowed by the excitement of ETF approvals. However, post-approval profit-taking has made the U.S. data more influential.
The day’s critical data was the U.S. GDP growth figure, a key indicator of economic health. Experts predicted a slowdown to 2% growth in the last quarter of 2023, down from the previous 4.9%. ING analysts believe the upcoming PCE data will clarify the interest rate trajectory, but today’s GDP was already a significant signal for a soft landing.
The slowdown in economic growth is something the Federal Reserve desires, especially as it aligns with the weakening employment sector. The forthcoming PCE data, critical for assessing current inflation levels, will be pivotal before the Fed’s meeting.
Unemployment claims were higher than expected, and durable goods orders came in lower, which could be favorable for cryptocurrencies. However, the higher-than-expected GDP could embolden the Fed slightly. The upcoming PCE data will reveal the latest inflation status, potentially increasing market volatility in the hours ahead. For now, the latest figures have not negatively impacted Bitcoin prices.
