Pessimistic US economic data, how will the crypto market go?
US economic data downgraded
The United States released a series of key economic data, the most important of which was the revised estimate of gross domestic product (GDP) in the first quarter of 2024. The data showed that the annualized rate of economic growth in the first three months of 2024 was lowered to 1.3%, far lower than 3.4% in the fourth quarter of 2023, and slightly lower than the initial forecast of 1.6%. In addition, corporate profits were significantly lowered from a month-on-month increase of 3.9% to a decrease of 1.7%.
Continued inflationary pressures
Another worrying factor is the gross domestic product deflator (GDP deflator), which measures changes in the price level of domestically produced goods and services. The GDP deflator in the first quarter was flat with the initial estimate of 3.1%, indicating that inflationary pressures remain high despite the contraction of the real economy.
Global economic difficulties
Globally, many countries have fallen into deflation. Germany, as the pillar of economic growth in the European Union, saw its monthly inflation rate increase by only 0.1% in May, indicating that the country is on the verge of deflation.
To make goods more affordable for consumers, major U.S. retailers are slashing prices on a range of goods, a sign that deflationary pressures are building. At the same time, low-cost leaders such as Walmart are seeing revenue growth from high-income earners, suggesting that even the wealthiest consumers are feeling the economic pinch.
More Bull Market Layout Strategy Introductions and My Near Cow House to Get Rich!