Plunge

Reserve

Bitcoin

April

<h2 id="key-points">Key Points</h2>
<ul>
 <li>Bitcoin (BTC) value fell below $62,000 as US macro data unsettled markets.</li>
 <li>Surprisingly low US Q1 GDP data and rising prices highlighted difficulties in controlling inflation.</li>
</ul>
<p>Bitcoin’s value dropped below $62,000 during the April 25 Wall Street opening. This was due to unsettling US macro data described as “stagflationary”.</p>
<h2 id="implications-of-the-federal-rate-cuts">Implications of the Federal Rate Cuts</h2>
<p>The newest data showed a multi-day low of $62,785 on Bitstamp. This coincided with troubled market sentiment as the US Q1 GDP was significantly lower than expected at 1.6%.</p>
<p>Simultaneously, prices rose more than anticipated, emphasizing the complex task of managing inflation before the Federal Reserve.</p>
<p>Trading resource The Kobeissi Letter questioned whether the economy is starting to weaken, noting the unexpected nature of the GDP data. It was nearly 50% lower than a forecast by Goldman Sachs.</p>
<p>The market was already reducing the odds of economic policy loosening by the Federal Reserve on that day. It no longer fully anticipated an interest rate cut earlier than December.</p>
<p>The latest data from CME Group’s FedWatch Tool showed just a 6.3% chance of a rate cut at the next Federal Open Market Committee (FOMC) meeting, scheduled for May 1.</p>
<h2 id="bitcoin-and-us-equities">Bitcoin and US Equities</h2>
<p>Bitcoin followed US equities, particularly tech stocks, downhill, struggling to maintain ground regained the previous week after a geopolitically-induced dip below $60,000.</p>
<p>However, not everyone was preparing for losses. Popular trader Crypto Chase suggested that Bitcoin could increase to top out at $68,000.</p>
<p>Analyst Caleb Franzen stated that the short-term holder (STH) realized price, currently at $59,530, formed the definitive line in the sand. If Bitcoin falls below this, he would become bearish.</p>

Stagflation Fears Plunge Bitcoin towards One-Week Lows Amid US GDP Revelations

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