🔥🔥🔥 Bitcoin takes a hit due to latest U.S. inflation data
Bitcoin faced a challenge as it briefly dropped below $63,000 on Thursday, a move attributed to concerning U.S. economic data. The first-quarter GDP report showed growth at just 1.6%, below expectations of 2.5%, and inflation surged to 3.1%, raising concerns about stagflationary pressures.
The market reacted swiftly across asset classes, with major U.S. indexes like the S&P 500 and Nasdaq dropping nearly 2%, and bond yields climbing to 4.73%. Cryptocurrencies , including Bitcoin and Ethereum, slid over 4%, while #Altcoins👀🚀 like Solana, Avalanche, and Aptos saw steeper losses of 8% to 9%.
Liquidity shifts were evident in #cryptocurrency exchanges, with strong sell orders around $64,765 to $67,700 and bids concentrated around $63,500. Despite volatility, Bitcoin filled one of two gaps left by recent futures trading, indicating underlying market strength.
The market's response to the economic data raised doubts about the Federal Reserve's ability to cut interest rates, potentially prolonging the recovery phase for assets like Bitcoin. #CryptoTrading firms advise caution in the immediate term, expecting capped upside potential for Bitcoin and likely consolidation as the market assesses the economic impact.
Source - cryptopolitan.com
