Yesterday's big Bitcoin drop may be a big trap
Yesterday's correction created panic in the cryptocurrency market but already today normalcy came after the bulls have defended the $64,000 zone, the truth is that the BTC price fell to one-week lows on the "stagflation" of US GDP. "Bitcoin traders remain unperturbed as the BTC price follows stocks lower after surprising US macroeconomic data."
In William Suberg's view, "Markets opened with worried sentiment after U.S. Q1 GDP came in significantly below expectations at 1.6%."
According to Kobeissi Letter in part from an X-reaction, "If 1.6% is the final reading, it would end 6 consecutive QUARTERS of 2% or higher growth. However, we have yet to have 2 consecutive quarters of declining GDP since Q2 2022."
It has been noted that, "Markets were already downgrading the odds of a Fed policy easing on the day, no longer fully pricing in an interest rate cut before December."
Therefore, "Bitcoin followed U.S. stocks, and in particular, tech stocks, downhill, struggling to hold the ground regained the previous week after a geopolitically induced drop below USD 60,000"
SOURCES CONSULTED
Cointelegraph. Bitcoin price risks 1-week lows as US GDP sparks ‘stagflation’ woes. Link
OBSERVATION:
The cover image does not belong to the author: @lupafilotaxia, the image was taken from: Cointelegraph
