US GDP and Employment Data Released: How Did Bitcoin (BTC) React?

• The cryptocurrency market is experiencing fluctuations as investors await key economic data from the US.
• Particularly, the market is keenly anticipating the US GDP and unemployment figures, which could influence market sentiment.
• “The recent GDP data has fallen short of expectations, causing a ripple effect across the financial markets,” said a market analyst.

Stay updated with the latest cryptocurrency news and market trends. Discover how economic indicators impact the crypto market.

US GDP Data and Its Impact on the Crypto Market

The latest data from the US Bureau of Economic Analysis reveals that the US GDP grew by 1.3% in the first quarter of the 2024 fiscal year, surpassing market expectations. Despite initial forecasts predicting a 1.6% increase, the actual figures have provided a boost to investor confidence. In the last quarter of the 2023 fiscal year, the GDP saw a significant rise of 3.4%.

The lower-than-expected GDP figures initially dampened investor sentiment, leading to a substantial sell-off in the broader financial market, including the cryptocurrency sector. However, the market’s expectation of a 1.2% growth in the first revision of the GDP data suggests that the economy is performing better than Wall Street had anticipated, potentially restoring investor optimism.

Macroeconomic Concerns and Crypto Market Sentiment

Amid inflation concerns, the Federal Reserve has maintained high interest rates, which has led many investors to adopt a cautious stance. The persistent inflation, remaining above the 2% target, has further compounded these concerns, negatively affecting the sentiment in the crypto market.

Bitcoin Price Rebounds Following Employment Data

While the latest GDP data has bolstered market sentiment, Bitcoin has also gained momentum. The broader cryptocurrency market has been volatile today as investors await the release of significant economic data.

According to the US Department of Labor, weekly unemployment claims rose by 3,000 to 219,000 last week, slightly above the market estimate of 218,000. Despite this minor increase in new unemployment claims, the underlying strength of the labor market remains intact. Reports indicate that the latest data continues to support the economy.

With the better-than-expected GDP figures, the crypto market and the broader financial sector are now closely monitoring the upcoming US PCE inflation data. According to the CME FedWatch Tool, there is a 98.9% probability that the Federal Reserve will keep interest rates unchanged at its June 12 meeting.

Following the revised GDP data for the first quarter, the yield on the US 10-year Treasury note fell by 0.99% to 4.577 dollars. Simultaneously, the US Dollar Index Futures dropped by 0.25% to 104.770 dollars.

Meanwhile, Bitcoin’s price rose by 0.81% to 68,173.14 dollars, recovering from a 24-hour low of 67,101.49 dollars. The Open Interest in Bitcoin Futures also increased by approximately 1% over the last four hours, reaching 505.44K BTC or 34.54 billion dollars, indicating growing investor confidence in the cryptocurrency.

Conclusion

In summary, the recent US GDP data has had a mixed impact on the financial markets, including the cryptocurrency sector. While initial reactions were negative, the better-than-expected figures have helped restore some investor confidence. As the market awaits further economic indicators, such as the US PCE inflation data, the crypto market remains poised for potential volatility. Investors should stay informed and be prepared for rapid changes in market conditions.