Breaking: Bitcoin Price Soars After US GDP & Job Data

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As a researcher with a background in economics and finance, I have closely monitored the cryptocurrency market, particularly Bitcoin, for several years now. Today’s trading session has been particularly volatile, with investors eagerly awaiting the U.S. GDP and job data releases.

As a researcher studying the cryptocurrency market, I’ve observed that Bitcoin‘s price has experienced significant volatility today. The market is currently on edge, anticipating the release of key economic indicators from the United States – specifically, the GDP and job data. Unfortunately, the advanced estimate for GDP fell short of what investors had anticipated, which has negatively impacted their sentiment towards the market.

Today, the market anxiously anticipated the unveiling of the U.S. Gross Domestic Product (GDP) figures and weekly jobless claims report. Tomorrow, we will receive the U.S. Personal Consumption Expenditures (PCE) inflation data.

U.S GDP Soars 1.3%

As an analyst, I’d interpret the recent economic data released by the U.S. Labor Department’s Bureau of Economic Analysis in my own words: The American economy expanded by 1.3% during the initial phase of fiscal year 2024. This growth was responsible for influencing market sentiment positively. It is important to note that the preliminary figures revealed a slightly higher expansion rate of 1.6% in the first quarter, following a robust increase of 3.4% in the last quarter of fiscal year 2023.

As an analyst, I’ve noticed that the unexpectedly weak GDP data has caused concern among investors, leading to a significant market downturn, including in crypto. However, it’s important to note that the initial estimate for U.S. GDP growth in Q1 was set at 1.2%. Given this context, the recent data may actually be seen as positive news since the economy has shown stronger growth than anticipated.

Currently, worries about macroeconomic issues, particularly inflation, have negatively impacted the crypto market’s outlook. The U.S. Federal Reserve’s decision to maintain elevated interest rates in response to persistent inflation has kept some investors from entering the market.

Bitcoin Price Regains Momentum After Job Data

The most recent GDP figures have improved investor confidence, evident in Bitcoin’s resurgence. It’s important to note that the crypto market as a whole experienced volatility today, with traders holding off on significant moves before the highly anticipated economic report was released.

The latest employment report from the U.S. Labor Department indicates that the number of jobless claims went up by 3,000 to reach 219,000 in the previous week. This is higher than the predicted figure of 218,000 based on market expectations. However, the robustness of the labor market remains evident despite the slight increase in new filings for unemployment benefits. The recent data suggests that the economy continues to be bolstered by this ongoing support.

With the US GDP figures surpassing predictions, both the crypto market and the wider financial community will closely monitor the forthcoming US Personal Consumption Expenditures (PCE) inflation data. The CME FedWatch Tool indicates a high likelihood of 98.9% that the Federal Reserve will maintain their current interest rate at the upcoming June 12 meeting.

Concurrently, after the updated figure for U.S. first-quarter GDP was released, the yield on the 10-year U.S. Bond decreased by 0.99% to hit $4.577. In parallel, the price of U.S. Dollar Index Futures dropped by 0.25%, reaching $104.770.

Alternatively, the price of Bitcoin climbed 0.81%, reaching a value of $68,173.14, having dipped to a 24-hour low of $67,101.49 earlier. Furthermore, Bitcoin Futures Open Interest grew by approximately 1% within the past 4 hours, amounting to 505.44K BTC or an equivalent value of $34.54 billion, indicating a heightened level of faith among investors regarding cryptocurrency.

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2024-05-30 16:13