US economic growth tops estimates, grew by 2.9% during the fourth quarter

The U.S. economy grew by 2.9% during the fourth quarter, narrowly topping estimates of 2.8%.

Growth in the final three months of last year was primarily driven by consumer and federal government spending, according to the advance estimate. The data shows a reduction in the growth rate from the third quarter when the economy expanded 3.2%. 

source: bea.gov

Bitcoin’s price whipsawed following the news. The leading cryptocurrency by market cap dropped below $23,000 shortly after 8:30 a.m. EST, from around $23,100, according to data via TradingView. 

“This data is of massive importance as it is the first piece of salient hard data from the U.S. since the 6th of January Non-Farm Payrolls,” said David Stritch, currency analyst at Caxton. 

GDP is the first in a litany of economic indicators coming over the next week ahead of the next Federal Reserve rate decision, with PCE inflation indicators up next tomorrow. 

Next Wednesday, central bank is expected to increase interest rates by 25 basis points. The CME Group’s FedWatch tool shows a 99.8% likelihood of a 25 basis point increase, bringing the target rate to 4.50-4.75%.

© 2023 The Block Crypto, Inc. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.