The Bitcoin market is currently experiencing volatility due to anticipation of U.S. GDP and job figures.
The Bitcoin market is currently anticipating the release of the United States GDP and job figures, which has led to volatile trading in the price of Bitcoin today. A significant factor that dampened the sentiment of investors was the fact that the advanced estimate of GDP data came in lower than what the market had anticipated.
As a result, the market was eagerly anticipating the publication of the United States GDP and weekly unemployment benefit claims data today, followed by the release of the United States PCE inflation, which is set to take place tomorrow.
The United States Department of Labor’s Bureau of Economic Analysis reported that the country’s gross domestic product (GDP) increased by 1.3% during the first quarter of fiscal year 2024, which fueled market sentiment. It is noteworthy that the advanced estimate data showed that gross domestic product (GDP) increased by just 1.6% in the first quarter, followed by a spike of 3.4% in the last quarter of the fiscal year 2023.
The slowdown in GDP figures has negatively impacted investors’ morale, leading to a significant selloff in the entire financial market, particularly in the cryptocurrency sector. The market, on the other hand, anticipated that the initial adjustment of the statistics about the United States’ gross domestic product would reveal a growth of 1.2% in the first quarter.
Considering this, the latest data is likely to invigorate investors, as the economy has progressed beyond Wall Street’s expectations. Macroeconomic concerns, particularly in light of the prevailing inflationary conditions, have subdued the sentiment on the cryptocurrency market thus far. The Federal Reserve of the United States has maintained a higher interest rate, forcing many investors to stay away despite inflation remaining above its target of 2%.
Bitcoin Price Regains Momentum After Job Data
As a result of the most recent GDP figures, there has been an increase in market mood, as demonstrated by Bitcoin’s regaining momentum. It is noteworthy that the cryptocurrency market as a whole has experienced tumultuous trading today, with investors taking a break in anticipation of the important economic release.
Other significant economic statistics released by the United States Department of Labor revealed that the number of people filing weekly claims for unemployment increased by 3,000 to 219,000 last week, which is higher than the market forecast of 218,000. Even if there was a minor increase in the number of people in the United States who filed new claims for unemployment benefits last week, the fundamental strength in the labor market continues to be present.
Reports suggest that the economy continues to receive financial support. Given the unexpected strength of the United States’ gross domestic product (GDP) data, the cryptocurrency market and the broader financial industry will closely monitor the upcoming statistics on the country’s consumer price index (PCE) inflation.
Based on the information provided by the CME FedWatch Tool, there is a 98.9% chance that the Federal Reserve will maintain the current level of interest rates at their forthcoming meeting on June 12th without making any changes. During this time, the yield on the United States 10-year bond fell by 0.99% to $4.577, following the revision of the GDP data for the first quarter in the United States.
At the same time, the U.S. Dollar Index Futures experienced a 0.25% decline, reaching $104.770.On the other side, the price of Bitcoin increased by 0.81% and reached an all-time high of $68,173.14 after reaching a 24-hour low of $67,101.49. The Bitcoin Futures Open Interest also increased by around 1% in the past four hours, reaching 505.44 thousand BTC, which is equivalent to $34.54 billion. This indicates that investors are becoming more confident in the cryptocurrency.