Friday, 2 June 2023

Crypto News

US GDP misses goal as Bitcoin price seeks to erase ‘ultra nasty’ 7% dip

US GDP misses goal as Bitcoin price seeks to erase 'ultra nasty' 7% dip

Bitcoin (BTC) stuck to $29,000 at the April 27 Wall Street open as United States GDP growth missed expectations.

BTC/USD 1-hour candle chart (Bitstamp). Source: TradingView

U.S. GDP figures reveal surprise slowdown

Data from Cointelegraph Markets Pro and TradingView showed BTC/USD once again stagnant after flash volatility the day prior.

The largest cryptocurrency had liquidated over $300 million in long and short positions after a snap correction over claims that Mt. Gox and U.S. government bitcoins had left their wallets.

A subsequent rebound rescued some of the losses, but $30,000 remained out of reach as macro data failed to offer a suitable catalyst.

This came in the form of GDP growth, which at 1.1% fell far short of predictions.

“Growth expectations are falling fast,” financial commentator Tedtalksmacro wrote in part of Twitter follow-up.

Gold bug Peter Schiff, chief economist and global strategist at Europac, predicted that inflation would endure at the hands of the Federal Reserve, which next week is due to decide on the next changes in interest rates.

“Today’s 1.1% Q1 #GDP growth confirms the economy is getting weaker as inflation is getting stronger,” he summarized.

“The Fed has already lost its war against inflation. Inflation won and the U.S. economy lost. The Fed’s next move will be to ‘rescue’ the economy by creating even more inflation.”

Market expectations for a 0.25% rate hike in May remained unchanged versus the start of the week as a result of the GDP data, according to CME Group’s FedWatch Tool, with the odds remaining at 85%.

Fed target rate probabilities chart. Source: CME Group

Bitcoin price recovers from “ultra nasty correction”

Turning to Bitcoin, traders’ BTC price targets for the short term were decidedly conservative.

Related: Bitcoin price can ‘easily’ hit $20K in next 4 months — Philip Swift

Michaël van de Poppe, founder and CEO of trading firm Eight, highlighted upside and downside levels close to spot price.

“Ultra nasty correction on Bitcoin, causing a chain reaction on altcoins too,” he told Twitter followers.

“Levels are quite clear, as Bitcoin is still at $29,000. Needs to hold…

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