Breaking: US GDP Growth Slows in Q4, Bitcoin Price To Fall Further

The fourth quarter’s U.S. gross domestic products (GDP) increased at an annual rate 2.7%, slightly lower than the 2.9% estimates.
According to the U.S. Bureau of Economic Analysis, the quarter’s economic growth was 3.2% compared to 3.2% the previous quarter. Consumer spending increased 1.4%, which is the lowest increase since Q1 2022. It was also lower than the advance estimate of 2.1%. The revised estimate of 1.1% growth in goods spending shows a 0.5% decrease in goods spending.


The U.S. stock markets rose with all three Dow Jones, S&P500, and Nasdaq moving higher. Traders anticipate further increases due to strong earnings and lower rates.
The U.S. Federal Reserve will likely continue to hold a small rate increase at its next FOMC meeting, March 21-22, despite the weaker-than-expected economy growth. Although the FOMC Minutes for February suggested a slightly dovish mood, rate hikes are still expected.
Michael van de Poppe, a crypto analyst, believes that the U.S. GDP came in lower then expected but still positive at 2.7%. While the fear of a recession can be avoided, positive data is needed to improve. He also stated that the economy is improving slowly, which is a good sign for the continued growth of the markets. He predicts Bitcoin reaching $30K.
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Bitcoin prices are currently trading at $23,958, an increase of 1% over the last 24 hours. The uncertainty in the crypto market continues to make the BTC price volatile.

U.S. Dollar Index (DXY), which is a measure of the market’s stability after the U.S. Q4 GDP report, remains volatile. The DXY is still high, which limits Bitcoin’s price from rising above $25K.
Other cryptocurrencies include Ethereum, BNB and Polygon. Solana is also available.
Also read: Ethereum Price to Hit $2,000 Popular Analyst Predicts the Best Level To Buy

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