US GDP misses goal as Bitcoin price seeks to erase 'ultra nasty' 7% dip
Bitcoin (BTC) stuck to $29,000 at the April 27 Wall Street open as United States GDP growth missed expectations.
Data from Cointelegraph Markets Pro and TradingView showed BTC/USD once again stagnant after flash volatility the day prior.
The largest cryptocurrency had liquidated over $300 million in long and short positions after a snap correction over claims that Mt. Gox and U.S. government bitcoins had left their wallets.
A subsequent rebound rescued some of the losses, but $30,000 remained out of reach as macro data failed to offer a suitable catalyst.
This came in the form of GDP growth, which at 1.1% fell far short of predictions.
US economy is losing steam: The US GDP grew 1.1% in Q1 2023 ann, slower than the expected 1.9% & slower than previous quarter (2.6%). The main drag came from significantly lower inventory accumulation, while private consumption remained strong. pic.twitter.com/ezpuHeJuNC
“Growth expectations are falling fast,” financial commentator Tedtalksmacro wrote in part of Twitter follow-up.
Gold bug Peter Schiff, chief economist and global strategist at Europac, predicted that inflation would endure at the hands of the Federal Reserve, which next week is due to decide on the next changes in interest rates.
“Today's 1.1% Q1 #GDP growth confirms the economy is getting weaker as inflation is getting stronger,” he summarized.
Market expectations for a 0.25% rate hike in May remained unchanged versus the start of the week as a result of the GDP data, according to CME Group’s FedWatch Tool, with the odds remaining at 85%.
Turning to Bitcoin, traders’ BTC price targets for the short term were decidedly conservative.
Related: Bitcoin price can ‘easily’ hit $20K in next 4 months — Philip Swift
Michaël van de Poppe,
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