US GDP misses target as Bitcoin price tries to erase ‘ultra ugly’ 7% decline
Bitcoin (BTC) held at $29,000 at the open on Wall Street on April 27 as US GDP growth missed expectations.
US GDP figures show a surprising decline
Data from Cointelegraph Markets Pro and TradingView showed that BTC/USD was once again stagnant after flash volatility the previous day.
The largest cryptocurrency had liquidated over $300 million in long and short positions following a snap correction over claims that Mt. Gox and US government bitcoins had left the wallet.
A subsequent rally rescued some of the losses, but $30,000 remained out of reach as macro data failed to provide a suitable catalyst.
This came in the form of GDP growth, which at 1.1% was far below forecasts.
“Growth expectations falling fast,” financial commentator Tedtalksmacro wrote in part of the Twitter follow-up.
Gold bug Peter Schiff, chief economist and global strategist at Europac, predicted that inflation would remain in the hands of the Federal Reserve, which is due to decide on the next interest rate changes next week.
“Today’s 1.1% Q1 #GDP growth confirms economy is weakening as inflation strengthens,” he in summary.
“The Fed has already lost the war on inflation. Inflation won and the US economy lost. The Fed’s next move will be to ‘save’ the economy by creating even more inflation.”
Market expectations for a 0.25% rate hike in May remained unchanged from earlier in the week as a result of the GDP data, according to CME Group’s FedWatch Tool, with the odds still at 85%.
Bitcoin Price Recovers From ‘Ultra Nasty Correction’
As for Bitcoin, traders’ near-term BTC price targets were decidedly conservative.
Related: Bitcoin Price Could ‘Easily’ Reach $20K In Next 4 Months – Philip Swift
Michaël van de Poppe, founder and CEO of trading company Eight, highlighted upside and downside levels near the spot price.
“Ultra nasty correction on Bitcoin, which also causes a chain reaction on altcoins,” he told Twitter followers.
“The levels are pretty clear as Bitcoin is still at $29,000. Need to hold $28,200 for potential longs. Breaking and turning $29,200 is a continuation towards the tops.”
Daan Crypto Trades, meanwhile, noted that BTC/USD had practically come full circle in 24 hours, with leverage washed from the system.
“Yesterday we saw some massive hugs on both sides, which completely washed out all the high leverage,” he commented next to an explanatory diagram.
“Since then, the price has been about where it was before the first short squeeze, but open interest hasn’t come close to recovering. Low leverage at the moment. A bit of a spot premium.”
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This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
