XS.com market analyst Linh Tran told COINOTAG on August 25 that the near-term trajectory of Bitcoin will hinge on upcoming U.S. economic data, with a focus on preliminary Gross Domestic Product and core Personal Consumption Expenditures inflation readings.

Tran said a sequence of slowing growth and easing inflation would bolster the Federal Reserve’s rationale for initiating a rate-cutting cycle, thereby creating a more liquidity-rich environment likely to support a measured recovery in Bitcoin market performance.

By contrast, Tran warned that unexpectedly “hot” data could prompt investors to remain defensive, potentially extending a short-term pullback rather than prompting renewed risk-on flows. (FX678)