Bitcoin Dips Below $62,000 Amid Market Apprehensions due to US Macroeconomic Data
Summary:
Bitcoin's value dipped to under $62,000 at the beginning of Wall Street trading on April 25, prompted by disappointing US macroeconomic data suggesting potential stagflation. The data pushed BTC/USD to a several day low of $62,785 on Bitstamp, as the Q1 GDP of 1.6% was significantly under projected figures, leading to market speculations. While some traders forecasted losses, others remain optimistic for a future recovery.
Bitcoin's value tumbled to below $62,000 at the commencement of Wall Street trading on April 25, due to concerns triggered by dismal US macroeconomic data which hinted at potential stagflation. This situation saw BTC/USD hitting a several day low of $62,785 on Bitstamp, according to data from Cointelegraph Markets Pro and TradingView.
Market anxieties were spurred by the underwhelming US Q1 GDP, which at 1.6% was considerably below the predicted figures. It was further complicated by an unexpected inflation boost which sparked comment on the complexities of achieving inflation control as set by the Federal Reserve.
The Kobeissi Letter, a trading resource, posed the question of an apparent economic weakening, referencing the fact that should the final GDP reading be 1.6%, it would mean the end of six consecutive quarters of growth beyond 2%. Coming in at almost 50% less than Goldman Sachs' prediction, the GDP figures were noted to be surprisingly poor.
Meanwhile, the market was speculating with reduced chances of any economic policy relaxation from the Federal Reserve, no longer expecting an interest rate cut before December. The CME Group's FedWatch Tool reflected only a 6.3% probability of rate reduction at the upcoming Federal Open Market Committee (FOMC) meet scheduled for May 1.
In line with falling US stocks, particularly tech stocks, Bitcoin found it difficult to regain lost ground after a significant drop below $60,000 caused by geopolitical concerns. However, despite the downward trend, there was optimism amongst some traders. Based on his latest X post, noted trader, Crypto Chase, suggested BTC/USD could recover with a new top at $68,000.
Looking at the broader picture, fellow trader Crypto Tony also predicted more record highs before any possible price stabilization. Analyst Caleb Franzen put faith in the short-term holder (STH) realized price, which currently stands at $59,530. Franzen warned that should BTC fall under this benchmark, he would have concerns for the cryptocurrency.
Please note, this article does not constitute investment guidance or recommendations. Every investment and trade involves risk - it's advised that readers conduct their own investigations prior to making a decision.
Published At
4/25/2024 5:01:45 PM
Disclaimer: Algoine does not endorse any content or product on this page. Readers should conduct their own research before taking any actions related to the asset, company, or any information in this article and assume full responsibility for their decisions. This article should not be considered as investment advice. Our news is prepared with AI support.
Do you suspect this content may be misleading, incomplete, or inappropriate in any way, requiring modification or removal?
We appreciate your report.