- Bitcoin and others can rally if GDP surprisingly contracts for H2 confirming a technical downtrend.
- US GDP is assumed to show a hike of 0.5 percent annualized rate.
Bitcoin is waiting for official U.S data to be announced which is expected to show that the Global largest economy has closely avoided meeting the recession in H2 of 2022. After getting relief from the FED(Federal Reserve) on Wednesday.
According to the U.S Bureau of Economics Analysis initial reading of H2 of gross domestic goods due at 08:30 EST(12:30 UTC) is assumed to show a hike of 0.5% annualized rate, after following a rebounding in H1 of 1.6 percent contraction.
The data is important as it will disclose the damage that took place because of inflation at a 40-year high and can also create more volatility in the market. Much other important data Like GDP and inflation have become more market-moving than ever.
On Wednesday the Central bank left further guidance and moved toward making future Policies fully data-dependent.
The Federal Reserve appreciated this step of the Central bank and mentioned it as “a tool that central banks use to provide communication to the public about the likely future course of monetary policy.”
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Risky investments Like Bitcoin and others can rally if GDP surprisingly contracts for H2 confirming a technical downtrend. A downtrend will bolster investors’ belief in a slower interest rate and finally ease constraints on capital supply.
Jerome Powell 16th chair of FED “keeps saying ‘data dependent,” is a sign that is making us worry about the recession.
Risk assets increased on Monday 25th July after Jerome Powell’s statement that the Central Bank would likely need to slow down the rate hike at some points. The statement acknowledged the latest downtrend in consumer production and spending.
Jerome Powell’s statements overshadowed a 75 basis point rate hike for the second consecutive.
According to data on the Coin market cap, Bitcoin is not witnessing an appropriate hike for the last seven days’ highest price of Bitcoin has reached $24,110(28 July,2022) and the lowest price recorded in the last seven was $ 20,776(26 July,2022). Many market predictors are trying their level best to predict further movements.
Source: https://www.thecoinrepublic.com/2022/07/29/the-bitcoin-market-is-awaiting-the-release-of-us-gdp-data-after-the-biggest-single-day-gain-in-six-weeks/