Bitcoin price erases FOMC gains as US dollar surges on Q2 GDP print
Bitcoin (BTC) ate away at the prior day’s gains on July 27 as United States macroeconomic data produced a muted reaction.
Data from Cointelegraph Markets Pro and TradingView showed BTC price strength waning after a brief push to $29,680 into the daily close.
The largest cryptocurrency had offered a modest uptick after the Federal Reserve hiked interest rates to their highest since 2001 — a move already priced in by markets.
The day’s U.S. GDP advanced print for Q2 came in better than forecast at 2.4% annualized, pointing to inflationary pressures continuing to ebb in what could prove a catalyst for risk asset performance.
Bitcoin did not noticeably react, however, with stocks likewise fairly flat after the Wall Street open.
Michaël van de Poppe, founder and CEO of trading firm Eight, thus hoped that the July 28 Personal Consumption Expenditures (PCE) Index release would provide a more tangible growth incentive.
“GDP comes out way more positive than expected. That's great. Soft landing case starts to pick up pace. If GDP was worse than expected, you'd see markets drop,” he argued in a Twitter update.
A subsequent post nonetheless cautioned that BTC/USD could see a dip beforehand, while $29,700 now formed a line in the sand.
Open Interest to new highs, price grinding upwards, seems likely to sweep down before up for #Bitcoin.If not? Break $29,700 in one-go and we'll have a party. pic.twitter.com/CxznrbMCVh
On-chain monitoring resource Material Indicators meanwhile suggested ahead of time that GDP would be a “nothingburger” for crypto.
An accompanying chart of the BTC/USD order book on largest global exchange Binance showed support still thin above $28,500, potentially easing a market drop should one begin.
“The strong economy/soft
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