Bitcoin price erases FOMC gains as US dollar surges on Q2 GDP print

Bitcoin (BTC) ate away at the previous days gains on July 27 as United States macroeconomic data produced a muted reaction.BTC/ USD 1-hour chart. Source: TradingViewAnalyst alerts of BTC price dipData from Cointelegraph Markets Pro and TradingView showed BTC cost strength subsiding after a quick push to $29,680 into the day-to-day close.The biggest cryptocurrency had actually offered a modest uptick after the Federal Reserve treked interest rates to their greatest given that 2001– a move currently priced in by markets.The days U.S. GDP advanced print for Q2 came in better than projection at 2.4% annualized, pointing to inflationary pressures continuing to ebb in what might show a catalyst for risk possession performance.Bitcoin did not noticeably respond, however, with stocks also fairly flat after the Wall Street open.Michaël van de Poppe, creator and CEO of trading firm Eight, hence hoped that the July 28 Personal Consumption Expenditures (PCE) Index release would supply a more tangible growth incentive.” A subsequent post nevertheless cautioned that BTC/USD could see a dip in advance, while $29,700 now formed a line in the sand.Open Interest to brand-new highs, cost grinding upwards, seems most likely to sweep down prior to up for #Bitcoin.”The markets reacting as if we are just one more walking closer to a pause, BTC and US equities higher,” he concluded the day prior.One noticeable response traditionally a headwind for crypto was U.S. dollar strength, which surged on July 27.

On-chain tracking resource Material Indicators on the other hand suggested ahead of time that GDP would be a “nothingburger” for crypto.An accompanying chart of the BTC/USD order book on biggest global exchange Binance showed support still thin above $28,500, potentially easing a market drop must one begin.”The strong economy/soft landing narrative is getting some traction, however the FED would still like to see softening of the labor market to support the thesis relative to what the historic record shows about the connection in between the labor market and inflation,” it included part of additional analysis.BTC/ USD order book data for Binance. Source: Material Indicators/TwitterU. S. dollar strength hits 2-week highsGDP similarly had little effect on market expectations for where Fed policy would address the next rate of interest choice point in September.Related: Bitcoin bull run next? Bitfinex stablecoin ratio blows up in 2023On the day, odds of rates pausing at their existing 5.25-5.5% stood at 76%, with a 24% likelihood of another 0.25% walking, according to CME Groups FedWatch Tool.Fed target rate probabilities chart. Source: CME GroupCommenting on the outlook for crypto vis-a-vis U.S. macro movements, monetary analyst Tedtalksmacro called the rate hike occasion “really vanilla.””The markets responding as if we are simply another walking closer to a pause, BTC and US equities higher,” he concluded the day prior.One noticeable response typically a headwind for crypto was U.S. dollar strength, which spiked on July 27. The U.S. dollar index (DXY) struck 101.84, its highest since July 11 and enhancing a bounce from its most affordable levels in over a year.U.S. dollar index (DXY) 1-day chart. Source: TradingViewMagazine: Should you orange pill children? The case for Bitcoin kids booksThis short article does not consist of investment guidance or recommendations. Every financial investment and trading relocation includes threat, and readers ought to conduct their own research study when making a choice.

Bitcoin (BTC) consumed away at the previous days gains on July 27 as United States macroeconomic information produced a muted reaction.BTC/ USD 1-hour chart. Source: TradingViewAnalyst cautions of BTC price dipData from Cointelegraph Markets Pro and TradingView showed BTC rate strength waning after a quick push to $29,680 into the day-to-day close.The largest cryptocurrency had offered a modest uptick after the Federal Reserve treked interest rates to their greatest given that 2001– a move already priced in by markets.The days U.S. GDP advanced print for Q2 was available in better than forecast at 2.4% annualized, indicating inflationary pressures continuing to drop in what could show a driver for risk possession performance.Bitcoin did not noticeably react, nevertheless, with stocks also fairly flat after the Wall Street open.Michaël van de Poppe, creator and CEO of trading firm Eight, thus hoped that the July 28 Personal Consumption Expenditures (PCE) Index release would provide a more tangible development incentive.” GDP comes out way more positive than expected. Thats fantastic. Soft landing case starts to pick up rate. If GDP was even worse than expected, you d see markets drop,” he argued in a Twitter update. “Bitcoin stable, stocks consistent. Now PCE much better than expected and we increase.” A subsequent post nonetheless cautioned that BTC/USD might see a dip in advance, while $29,700 now formed a line in the sand.Open Interest to brand-new highs, cost grinding upwards, appears most likely to sweep down prior to up for #Bitcoin. If not? Break $29,700 in one-go and well have a party. pic.twitter.com/CxznrbMCVh— Michaël van de Poppe (@CryptoMichNL) July 27, 2023

Other Questions People Ask

What impact did the Q2 GDP print have on Bitcoin price erases FOMC gains as US dollar surges?

The Q2 GDP print, which came in at 2.4% annualized, indicated a stronger-than-expected economic performance, yet Bitcoin did not react significantly. Despite the positive data suggesting easing inflationary pressures, Bitcoin's price strength waned after a brief rise to $29,680. This muted response reflects a broader trend where macroeconomic indicators have less influence on Bitcoin's price movements in the current market environment.

How did the US dollar's performance affect Bitcoin price erases FOMC gains?

The US dollar surged to its highest level since July 11, which traditionally acts as a headwind for cryptocurrencies like Bitcoin. As the dollar index (DXY) hit 101.84, Bitcoin's price struggled to maintain its gains from the previous day. This inverse relationship highlights how a strong dollar can dampen investor sentiment towards riskier assets such as Bitcoin.

What are analysts predicting for Bitcoin price following the FOMC gains and GDP data?

Analysts like Michaël van de Poppe suggest that Bitcoin may face a dip before potentially rising again, particularly if it can break the $29,700 resistance level. The upcoming Personal Consumption Expenditures (PCE) Index release is anticipated to provide clearer direction for Bitcoin's price movement. With open interest reaching new highs, traders are closely monitoring these indicators for potential volatility.

Why did Bitcoin fail to capitalize on the FOMC gains despite positive GDP data?

Bitcoin's inability to capitalize on the FOMC gains can be attributed to a combination of market saturation and the already priced-in interest rate hike by the Federal Reserve. The positive GDP data did not create the expected bullish momentum for Bitcoin, as investors remained cautious amid broader economic uncertainties. This indicates that Bitcoin's price dynamics are increasingly influenced by factors beyond traditional economic indicators.

What does the current market sentiment indicate for Bitcoin price in relation to US macroeconomic data?

The current market sentiment suggests a cautious approach towards Bitcoin as it reacts minimally to US macroeconomic data like GDP prints and interest rate changes. With expectations of a potential pause in rate hikes, traders are weighing the implications for risk assets. The thin support above $28,500 indicates that any significant downward movement could lead to increased volatility for Bitcoin in the near term.